Enforcing Judgments: How to Recover Debt Owed to You

WELLINGTON, New Zealand - July 5, 2024 - PRLog -- If you've been awarded a judgment through the New Zealand Court system for debt recovery, you'll want to enforce it effectively. This article outlines various enforcement options available to you when the judgment is against an individual, not a company.

Types of Judgments

Judgments can include orders made in the Disputes Tribunal for the recovery of funds or costs awards. Once you've been awarded a judgment (now referred to as the judgment debt), you become the judgment creditor, and the defendant becomes the judgment debtor.

Enforcement Options

Several enforcement options are available depending on your knowledge of the judgment debtor's assets and your budget for legal costs. Here are some effective methods:

1. Financial Assessment Hearing

A financial assessment hearing is useful if you're unaware of the judgment debtor's assets. An application is made to the Court, and a summons is issued to the debtor, ordering them to appear before a Registrar. The hearing examines the debtor's financial means, helping you determine their assets.

2. Attachment Order

If you know the debtor is employed, you can apply directly for an Attachment Order, which mandates their employer to deduct a certain amount from the debtor's wages or salary to pay you. The Court can also order WINZ to deduct from the debtor's benefit.

3. Charging Order

If the debtor owns property, you can register a charging order against it. This prevents the debtor from dealing with their property without settling the judgment debt first. Charging orders last for two years and must be renewed.

4. Bankruptcy

An application for bankruptcy is made through the High Court. If the debtor fails to pay within 10 working days of a bankruptcy notice, you can file for their adjudication as bankrupt. The Official Assignee will then investigate and liquidate the debtor's assets to pay the judgment debt.

- Bankruptcy affects the debtor's credit rating and limits their ability to manage a business or travel.

- Bankruptcy lasts three years, but its stigma can have long-lasting effects.

5. Warrant to Seize Property

You can apply for a warrant to seize the debtor's property, allowing a Court Bailiff to confiscate and sell it to pay the debt. The property is held for 7 days before being auctioned.

Legal Advice: Seek legal advice to determine the best enforcement action and associated costs.

Multiple enforcement options can be pursued simultaneously. If you need assistance enforcing a judgment, please contact us for professional guidance.

For expert legal advice and to explore your enforcement options, get in touch with our team today.

https://www.corelegal.co.nz