7 Ways to Enforce a Judgment

Apr 17, 2024 | Publication

After a judgment is obtained for an amount of money, there are numerous options open to a judgment creditor in relation to how to enforce the judgment (i.e. how to obtain the money which is owed pursuant to the judgment).

Option #1: Issue a Bankruptcy Notice

If the judgment debt is owed by an individual and the amount of the judgment is $10,000 or more, a bankruptcy notice can be issued.  A bankruptcy notice gives the person 21 days to comply from the date of the notice.  If the person does not pay the debt, and no application is made to the Court, an act of bankruptcy has been committed.  An application can then be made to the Court for a sequestration order and the appointment of a trustee in bankruptcy.

Option #2: Issue a Statutory Demand


If the judgment debt is owed by a company and the amount of the judgment is $4,000 or more, a statutory demand can be issued.  A statutory demand gives the company 21 days to pay the debt or apply to the Court to set aside the statutory demand.  If nothing happens in the 21 days, the company is deemed insolvent and then an application can be made to have a liquidator appointed.

Option #3: Apply for a Garnishee Order in relation to Salary

A garnishee order for salary is a court order that allows you to recover a judgment debt from the debtor’s wages.  The debtor’s employer will be required to pay some of the debtor’s salary to you directly.

Option #4: Apply for a Garnishee Order in relation to a bank account

A garnishee order for debts is a court order that allows you to recover a judgment debt from the debtor’s bank account or another party.  The bank or other party will be required to pay some money available to it to you directly.

Option #5: Apply for a Writ for Levy of Property

A writ for levy of property is an order to the Sheriff to seize and sell personal property belonging to the judgment debtor.  The money from the sale of the personal property is then used to pay the judgment debt.

Option #6: Issue an Examination Notice

An examination notice is a document requiring the production of information and documents.  This can be used to obtain information from the judgment debtor about what assets are held by the debtor.

Option #7:  Apply for an Examination Order

An examination order is a court order requiring the judgment debtor to attend court to answer questions about their financial position.

For an obligation free assessment of your legal options please contact us on (02) 9633 1826 or emailreception@mcauleylawyers.com.au

The information in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this publication is accurate at the date it is received or that it will continue to be accurate in the future. We are not responsible for the information of any source to which a link is provided or reference is made and exclude all liability in connection with use of these sources. If you do not wish to receive newsletters from us, please let us know.

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