Obtaining Judgment against a Defendant is a step in the process of recovering monies from a debtor – but not the end in many cases. A Judgment is valid for 12 years from the date on which the Judgment is granted. Judgment will adversely affect a debtor’s credit rating; however, that does not mean that your debtor will automatically pay.
Enforcement Warrants:
Under the Uniform Civil Proceeding Rules 1999, a Judgment Creditor can make an application to the Magistrates Court for an enforcement warrant to recover a Judgment, including interest at the statutory rate. Enforcement warrants can be issued by the Court for the seizure and sale of the debtor’s property, redirection of a debtor’s wages, and even the redirection of a debt owed to the debtor by a third party to be paid to the Judgment Creditor.
Winding Up:
If the debtor is a corporation and the debt amount is at least $2,000.00, “Winding Up” (otherwise known as involuntary liquidation) is an option. The Winding Up process involves having the corporation deemed insolvent and placed into liquidation. An Administrator is appointed and the company’s assets are assessed and distributed among the company’s creditors, including the Judgment Creditor.
If the debtor is an individual and the debt amount is at least $5,000.00, Bankruptcy is an option. A Trustee is appointed to collect and distribute the Bankrupt’s Estate, and in the process the Judgment (in whole or part) is satisfied.
In the coming weeks we will address each of the above enforcement options in greater depth providing a review of the process and timelines involved.
Stay Tuned!
We welcome you to contact our offices on (07) 5574 3560. We thank you for considering Nautilus Law Group.
Submitted by: Nautilus Law Group
