Enforcement of Judgement Debt in NSW: An Essential Guide from Titance Legal (series: debt recovery)
Welcome to the sixth chapter of Titance Legal's Debt Recovery Series. In this installment, we'll unpack the complexities of enforcing judgement debt in NSW, particularly when a debtor avoids payment.
Understanding Judgement Debt
Judgement debt comprises the amount a court determines a debtor owes to a creditor. This obligation often includes the principal debt, interest and legal costs. But the journey doesn't end with a favourable judgement; enforcing payment may necessitate additional steps.
Methods of Enforcement in NSW
As we step into 2023, a handful of principal debt recovery options are available to creditors in NSW:
1. Examination Notice: If the debtor's financial position is unclear, an examination notice can be issued. The debtor is then required to disclose their income, assets, and liabilities within 28 days.
2. Examination Order: If a debtor fails to respond to the examination notice, you may apply for an examination order, requiring the debtor to attend court and detail their financial circumstances.
3. Garnishee Order: If the debtor has a bank account, earns wages or is owed money, you may seek a Garnishee Order, permitting automatic deductions from these sources.
4. Writ for the Levy of Property: If the debtor owns property, this writ allows the sheriff to seize and sell it to repay the debt.
5. Charging Order: Applicable to debts judged by the District or Supreme Court of NSW, a charging order creates a security over debtor-owned assets, restricting their ability to deal with these assets.
6. Bankruptcy Proceedings: If the debt exceeds the statutory minimum, a bankruptcy notice can be served to an individual debtor, leading to potential bankruptcy proceedings.
7. Insolvency Proceedings: If the debt surpasses the statutory minimum and the debtor is a company, a statutory demand can be served, paving the way for insolvency proceedings if unaddressed.
Possible Resistance to Enforcement
Debtors may resist enforcement by claiming financial hardship or filing for insolvency. Each scenario necessitates a unique approach and calls for legal expertise.
Closing Thoughts
Enforcing judgement debt can be a convoluted process with several options at hand, depending on specific circumstances. A strategic approach and comprehensive understanding of the debtor’s assets and legal proceedings are crucial for success.
Let Titance Legal guide you through this labyrinth. Our team's expertise in navigating these complexities ensures that you have the support you need in your debt recovery journey. Connect with us today for custom advice and steadfast support.
Remember: we’re here to help you reclaim what’s rightfully yours.
