A credit union has obtained a High Court order preventing the extension of a solicitor’s insolvency protection period applying to it in its effort to recover a €203,000 debt from him.
Clones Credit Union had objected to a 40-day extension of a protection certificate for Fergal McManus from Cavan town. A protection certificate, issued under the Personal Insolvency Acts, affords comprehensive protection to a debtor from all action by a creditor. During its currency, a creditor may not commence or continue judgment enforcement proceedings against the debtor.
Ms Justice Marie Baker ruled the credit union was entitled to an order directing the protection certificate for Mr McManus should not apply to it.
The credit union had argued it would suffer irreparable loss if this happened and claimed Mr McManus had not disclosed information concerning his home, in particular a €120,000 loan from his mother-in-law and his parents which was secured on that property in an effort to deal with his debts.
Mr McManus, of Santa Maria, Alacken, Cavan, said what he did in relation to that loan was in accordance with law and he did not try in any way to put assets beyond the reach of creditors.
