Once you obtain a judgment and it is entered, if the debtor does not pay the judgment debt, you will need to consider the different judgment debt recovery options, which will allow you to enforce the debt. Some of these judgment debt recovery options are listed below.
If you are unsure of the financial circumstances of the debtor, as is often the case, a public examination of the debtor can be a useful tool to allow you to identify the debtor’s assets and income, so that you may choose the most effective judgment debt recovery option.
Whilst an examination summons is not an enforcement method in itself, the thought of being publically examined may encourage the debtor to pay the debt in order to avoid the examination, making an examination summons a useful judgment debt recovery option.
Another judgment debt recovery option which is extremely useful is a garnishee order, which if granted by the Court, can be served on a chosen bank or employer, in order to garnish the debtor’s bank account or wages. If the debtor’s bank is not known, garnishee orders can be issued against each of the major banks, often leading to the discovery of the debtor’s bank account/s.
This debt recovery method is a very successful and efficient method for collecting money, and can allow you to recover the debt immediately from a debtor.
Writ for Levy of Property
In order to enforce a judgment debt you can apply for a Writ for the levy of property, which if granted, will allow the Sheriff to attend the debtor’s premises and seize goods owned by the debtor, in order to sell them at an auction.
This option is not always the most time efficient method, however, it can be useful if you are collecting a small judgment debt or if you have knowledge that the judgment debtor is in possession of valuable goods.
It should be noted that not all goods owned by the judgment debtor can be seized. Excluded goods include clothing, tools of trade worth up to $2,000 and bedroom and kitchen furniture. Issues can also arise if the judgment debtor lives with other people, as it can be difficult for the Sheriff to ascertain what property belongs to the debtor.
If you are owed a debt above $5,000 by an individual, bankruptcy can be a useful judgment debt recovery option to allow you to recover your debt. For more information click here.
If you are owed more than $2,000 by a company, liquidation can be a useful debt recovery option to allow you to recover your debt. For more information click here.
If you would need assistance with collecting money owed by a judgment debtor, or to recover a debt, contact Matthews Folbigg for specialist advice as to which judgment debt recovery option will be most effective for you.