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Buachaill
Buachaill, Barrister
Category: Law
Satisfied Customers: 10623
Experience:  Barrister 17 years experience
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I have a question. If a judgement is regristered against a

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I have a question. If a judgement is regristered against a person and the person goes bankrupt within 6 months then the judgement does not hold preference over other creditors who do not have judgements, this is in Ireland. Is the date of the judgement the start of the 6 months or is it the date of regristering the judgenemt with the companies regristration ofice in Ireland. I am dealing with a situation where a person was awarded a hard won judgement on the 7th of march and regristered it on the 30ieth of march 2015. It took 4 years to achieve this.
To insulate himself the person who the charge was regristered against granted a charge to a friend and businesss partner on the 30ieth of March and got it regristered by the 11 of May 2015. Does the 6 months start at the 30ieth of March or the 12th of May for this second judgement before it is a preferred creditor even if second in line?
Submitted: 1 year ago.
Category: Law
Expert:  Buachaill replied 1 year ago.
1. The date of the judgment is the date when the court pronounces judgment. This is the date used for Statute of Limitations purposes. It makes no difference what date the judgment is registered with the Companies Registration Office, as most judgments are never registered with the CRO anyway. The date of registration of a judgment in the CRO is only relevant if the judgment debtor is a company and then only to validate it as a valid charge against the company. In your example, the charge registered in the CRO would take priority against the company as against the one registered on 11 May 2015. But the judgment creditor should also register the charge against any individual asset of the company which is available to them. This is the only way to ensure priority to that assets in an insolvency. It is foolish merely registering it against the company without charging the judgment against a particular asset of the company.
Expert:  Buachaill replied 1 year ago.
2. The other thing you should be aware of is that a judgment is good for six years from the date of judgment. That is the time limit for a judgment. If a company goes insolvent six months after getting a judgment, then the judgment holder is an unsecured creditor like all the others, unless the judgment is registered against the company, as here. Then, the judgment holder is only a creditor in preference to the unsecured creditors. It would have been much wiser to have registered the judgment as a judgment mortgage against a particular asset of the company and sought to well charge the judgment mortgage as then that asset would be available to pay the creditor.
Expert:  Buachaill replied 1 year ago.
3. Finally, there is no six month rule for judgments. I don't know why you keep referring to six months. If a person goes bankrupt or a company goes insolvent within six months, it makes no difference to the situation whether that insolvency or bankruptcy occurs after six months or three years. The onus in each stage ion the creditor to register the judgmetn against a specific asset of the debtor. Six months is only relevant if the Assignee in bankruptcy is attempting to set aside a fraud on creditors whereby one creditor was preferred to the others. Here, the charge to the friend and business partner was a voidable preference or a fraud on creditors. As a preference, it can be set aside by the assignee in bankruptcy. Another creditor, such as yourself can use the provisions of the 1634 Conveyancing Act to set aside this charge to the friend. Either way, it can be stopped.
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