Stay up to date with our latest News, Views & Resources by subscribing to our newsletter. We promise to provide you with quality content & the latest industry news.
How to Recover Undisputed Debts
How to Recover Undisputed Debts
When the court makes a decision that an individual or business is owed a debt, it issues a judgment order telling the debtor that they must pay the creditor.
However, often creditors are left wondering what happens if the debtor doesn’t pay. Find out how the court can assist you in recovering an undisputed civil debt.
Collecting civil debt
The process of collecting civil debt if the debtor doesn’t pay is called ‘civil enforcement’. A creditor can only initiate civil enforcement where a court or tribunal has ordered a debtor to pay a civil debt. The court doesn’t enforce judgment orders automatically; a creditor must select the appropriate enforcement actions and manage the process independently, or with the assistance of a lawyer. When you make an enforcement application, you can claim interest on civil debt that’s more than $3,000. If your order is more than six years old, you may need the court’s approval before taking enforcement action.
- Try to find the address yourself
- Make a confidential address information request with the Ministry of Justice, or
- Enquire with a government agency under the Official Information Act 1982.
Enforcement process
There are a number of ways that the court can help you to enforce a civil debt. These include:
- Assess the debtor’s finances on paper: a financial statement for the debtor can be completed by you or by the debtor, if you have sufficient information about the debtor. This can be useful if the debtor doesn’t have a phone, English is not their first language or they cannot attend a hearing
- Assess the debtor’s finances over the phone: if you have the debtor’s telephone number, you can apply for a registrar to telephone the debtor to ascertain their ability to pay. This can be useful if you don’t have the debtor’s address, you don’t want to attend a hearing or the debtor has not completed a financial statement, or
- Summon the debtor to a financial assessment hearing: if you have an address for the debtor, you can apply for a hearing to ascertain the debtor’s financial situation. You can serve a summons to the hearing on the debtor, or request a court-appointed bailiff to do so. If service is unable to be completed, you must provide a new address for the debtor. Where service is completed, but the debtor fails to attend the hearing, a warrant for the debtor’s arrest may be issued.
Enforcement actions
You can make multiple applications to enforce civil debt:
- If you know who pays the debtor (salary, wages or benefit), you can apply for an attachment order, which tells an employer or Work and Income to transfer money from the debtor’s wages or benefit to you. This arrangement can be set up either at a hearing if the parties agree, or after
the judgment order has been made - For a debtor who has valuable assets, you can apply to the court for a warrant to seize property. You must provide evidence that the debtor owns the property
- If someone else owes the debtor money, you can apply to the court for garnishee proceedings to have that money paid to you instead, and/or
- For a debtor that owns property, you can apply for a charging order to make it difficult for them to sell that property until the debt is paid.
Fees
There are fees associated with civil enforcement. You can, however, add the cost of fees to the amount owed by the debtor to be recovered when the debt is paid.
A list of current fees can be found here.
You must complete an application form for each debtor. A list of civil enforcement forms can be found here.
The process of enforcing civil debt can be time-consuming, and a debtor can throw up many roadblocks to prevent you from getting your money.
If you’re having problems recovering a debt, we’re happy to guide you.
On 4 July 2024, the Coalition Government introduced its plan to fix our housing crisis consisting of five interlocking actions.
Read MoreRelationships can be complicated waters to navigate at the best of times, but it can become even trickier when thought needs to be given to relationship property matters.
Read MoreLending money to your children to buy their first home can be a generous and life-changing move, but it’s essential to consider the legal implications before proceeding.
Read MoreThe Trust Act 2019 outlines the obligations of trustees, and when taking on a trusteeship an individual or company must be aware of the risks involved.
Read Morehttps://www.youtube.com/watch?v=Ml7nmEmtvSY
Read MoreTrusts Act 2019 also affects executors and administrators of wills
Read MoreCreditor compromise regime: Another option in insolvency Guest editorial: The economy - tougher times ahead? Love, heartbreak and...death? Make a new will and EPA's when you separate New Incorporated...
Read Morehttps://www.youtube.com/watch?v=lZ6pC9agrrs
Read MoreSenior Associate Scott Donaldson and Senior Solicitor Alice Milne have released episode 3 of their podcast, Off the Record.
Read MoreSenior Associate Scott Donaldson and Senior Solicitor Alice Milne have released episode two of their podcast, Off the Record.
Read MoreDuncan Anderson, Associate, Mactodd Lawyers, Queenstown
Read MoreSenior Associate Scott Donaldson and Senior Solicitor Alice Milne have started a new video podcast where they address issues in law affecting Queenstown businesses.
Read MoreMental health in the workplace Co-ownership arrangements Checking your home is accurately insured Helping your family before you pass away Notifications of privacy breaches increase significantly Post script
Read MoreMann v Paterson Constructions Pty Ltd—Builders' Quantum Meruits Revisited' (2021) 37 Construction Law Journal 207 discusses recent changes to the law in Australia regarding restitutionary claims able to be made...
Read MoreBuying off the plans New edition of To Trust or Not to Trust Climate Action Toolbox Post-Covid working world An independent trustee Postscript
Read MoreInvestment in Farming - A focus on syndicated farm investments The finite supply of water - Water easements Over the Fence - Crown Pastoral Land Reform Bill (submissions open),...
Read MoreThe government’s Budget, presented by the Minister of Finance the Hon Grant Robertson on 14 May has addressed, in the words of the Minister, “a 1-in-100 year health and economic...
Read MoreThese helpful checklists will guide you thought some of the most important areas you and your lawyer need to address when purchasing or selling a residential property and also when moving.
Read MoreAlso includes comprehensive checklists to you don't miss out any important step as well as details on how to protect your assets and when you also need to consider a...
Read MoreNot all investments in NZ require consent from the Overseas Investment Office (“OIO”) but like many countries NZ has controls on overseas investment. Certain land is subject to OIO consent.
Read MoreThis practical guide designed to steer you through the essentials of Family Trusts including: Is a family trust for you? Protection given by a Family Trust. Planning for your life. Duties of trustees and how to run a trust. Costs.
Read MoreOur local knowledge, experience and expertise will provide you with the support and advice you need for a successful property purchase, regardless of the size or complexity of the transaction.
Read MoreWe have produced a practical guide on buying a home or an investment property in New Zealand in Mandarin.
Read MoreYou’re catapulted into thinking about organising a funeral, whether it will be a cremation or burial and how to organise the day, and then you also need to think about...
Read More