Debt Collection Enforcement

What is the enforcement related aspects of debt collection?

If you have been pursuing a debt for a long time and are now at the stage where you have obtained a judgment debt against the person who you are pursing money from and they still will not pay, there are a few options open to you. You can seek a garnishee order, you can seek a repossession order or you can go for bankruptcy proceedings. Generally creditors tend to prefer garnishee orders or repossession because there is much higher likelihood of having the money returned when these types of orders are given. This does naturally assume, however, that the debtor actually has the ability to pay the judgment debt. If a debtor can no longer afford to pay their debts as an when they fall due and payable, they are then said to have become insolvent. Normally an insolvent debtor will not be able to pay their creditor’s back so creditors often would be ill advised to pursue recovery action in circumstances like this.

Garnishee

One of the major enforcement related legal actions which can be used by creditors is a garnishee action. This is an action where the creditor files a notice of motion in the court to have an order the wages of the debtor be garnished. This puts a legal obligation on the employer of the debtor to withhold pay from the debtor in order that the debt can then be paid. There are a number of government agencies which can also apply for a garnishee over the wages of a debtor. These agencies include the child support agency and in some cases the ATO.

Repossession

Also known as a writ for the execution of property or a writ for the levy of property, this is an order that the sheriff repossess an item of property belonging ot the defendant and then sell it at auction in order to pay the creditor of the debt. Repossession orders normally relate to amounts where a piece of property such as a car, a boat, or a piece of farm equipment can be taken by the sheriff and repossessed for the purposes o repayment of the debt.

The enforcement stage of debt collection is probably the most punitive and therefore difficult areas of the law because courts are very unlikely to grant orders like this unless it is absolutely necessary. This is because there is often a stigma in the community associated with the enforcement of orders like this. If you are in any way involved with an order like this you should seek legal advice immediately.

Debt Collection Letter Resources

• Repossessions Information about repossessions and how to enforce debts through repossession orders.