So, you have won a court case on a Statement of Claim and the court has ordered the defendant to pay monies to you, either as a refund or as damages. How do you translate your ‘legal victory’ into a real victory of actual recovery of the money owed to you under a Default Judgement against a no-show defendant, or other Court Judgement in your favour. Depending on the size of the judgement amount and defendant’s assets and income, the ways to enforce a New South Wales court judgement include the following debt collection processes:
- Writ for Delivery of Goods, for goods supplied by your business but not paid for by your customer;
- Garnishee Orders to have money taken from the debtor’ s wages or bank account by way of installment over time until the court judgement is fully paid;
- Writ of Levy of Property for the sheriff to seize goods (more common in smaller debt recovery matters) up the the amount of the court judgement;
- Applying for an Examination Notice from the court so as to require the debtor or a company director of the debtor to attend court and face our questions about:
- the identity and location of any assets of the debtor; and
- in respect of any “uncommercial transactions”, such as any assets sold for less than fair value or purchased for more than fair value;
- Creditor’s Statutory Demand for Debt served on a debtor which is a company, without the need for an affidavit verifying the debt, followed by an application for Winding up of the debtor company;
- Applying for bankruptcy of a debtor individual or the Directors of the debtor company shown to have allowed the company to trade whilst insolvent;
- Writ of Levy or Possession and sale of land (for enforcement of a court judgement made in the District Court, Sydney, or in the Supreme Court of NSW), if the debtor owns land;
- Charging Order over property of the debtor preventing the debtor dealing with that property (in District Court or Supreme Court cases).
Careful consideration should be given as to the asset and income position of the defendant with a court judgement against them, particularly of a defendant who has knowingly allowed its assets to be risked by failing to file a Defence in the court in time to prevent entry of a Default Judgment against them.
Contact us today and speak to our commercial litigator about the next step for you to recover debts owed to you under a court judgement.
Disclaimer: N.B. The articles published on this website are general information only and are not intended to be definitive advice on the subject area. They do not constitute legal advice and should not be relied upon as such. For legal advice relating to your particular situation, please contact us today and talk to a business lawyer.