Debt Recovery -
Garnishee

Below is a short description of what a garnishee is and how it operates.

GARNISHEE

This is an order of the Court to a third party, usually an employer, or a bank to pay money. If it is to an employer, it is to pay a certain percentage of the Debtor's wage to you until the debt is paid.

If it is to a bank, it is to pay funds held by that bank on behalf of the Debtor, to you. It could also be directed to any other party who you know have money belonging to the Debtor or owe it to the Debtor.

It should be noted that Garnishee Orders issued in the civil jurisdiction of the Local Court, for wage or salary in debt recovery, must, include an instruction to the garnishee regarding the amount that a judgment debtor is entitled to retain, known as the "weekly compensation amount" which is the amount specified for the purposes the Workers Compensation Act 1987.

The current weekly compensation amount effective from 1 April 2010 is $403.70. (The weekly compensation amount is adjusted in April and October each year)

Also, the Garnishee Order on an Employer, filed in the Court, must have the following wording:"Any amount paid under one or more garnishee orders must not, in total, reduce the net weekly amount of any wage or salary received by the judgment debtor to less than the standard workers compensation weekly benefit". 

This weekly benefit amount is adjusted on a regular basis, click  to access the relevant Workcover page  which details the weekly statutory rate being the amount the debtor can retain in your debt recovery action if you issue a garnishee.

A Garnishee order is obtained by filing a Notice of Motion, together with the Form of Garnishee Order in the Court with the appropriate fee. 

Click to discover the Local Court fees.

After the Order is issued from the Court, you then have to arrange to serve the Order on the 3rd party. 

Click to learn more about service.

How To Get The Necessary Information - Examination Summons

So, how do you know who the employer is, or, what bank you should serve the Garnishee order on in this debt recovery action?

This information has to be obtained. It might be that you know it, or if the Debtor applies to pay by installments, this information may be on the Debtor's affidavit of assets, filed in support of the application.

There is one other way, and that is to serve a demand for this information. This is known as a request to the debtor for financial information. It is a prescribed form sent to the Debtor, and the debtor has 21 days to provide the reply.

If the debtor does not provide the information, you can then file an application for an Examination Summons in the Court to have the Debtor attend the Court to be interviewed by you for this information.

The summons has to be personally served on the Debtor, and if the Debtor does not attend, the Court, at your request, will issue a warrant for the Debtor's arrest by the Sheriff so that the Debtor can be brought to Court to provide the information. You should also ensure that you ask the Registrar or Clerk of Courts for an order of the prescribed costs.

You should have a solicitor do this debt recovery action for you. There are costs, but they are added to the debt to be collected.

Debt Collection and Debt Recovery can be quite involved and complicated. You really should let the professional debt collection agent or solicitor advise you as to the best course of action, and look after it for you. It will cost you money, but in most cases, provided the debtor has assets, you should recover the additional costs you spend.

Contact:

Phone 02-4333 1690    Fax 02-4333 5144