Debt Recovery: How To Recover Your Money After Judgment (NSW)

Debt Recovery: How To Recover Your Money After Judgment (NSW)

What happens if a debtor doesn’t pay you back what’s owed, even after a court rules that they must?

Last week, we discussed the formal steps involved in the debt recovery process.

To quickly recap, this process involves first making contact to request payment of the owed amount, then if no response or further contact is established, a letter of demand can be written. This is a formal request to pay the outstanding amount in a specified time frame.

After this, mediation is the next step, followed by formal legal proceedings if no agreement or action is taken by the debtor. An experienced debt recovery lawyer or small business lawyer in Chatswood can assist you through the entire debt recovery process.

So what do you do if you find yourself at the point where you’ve followed this process, a court has ruled that the monies owed must be paid back to you, but still, the debtor does not pay?

It’s a frustrating dilemma; considering you’ve done everything you can to retrieve what is rightly yours.

Consider getting some small business legal advice in Sydney.

Here are some of the options to try and get your money back.

How To Recover Your Money Post Judgment

Once the judgment has been handed down, there are a few ways you can enforce the judgment, if you feel this is the right path to pursue.

Firstly it’s important to note, to enforce a judgment; you need to make an application to the NSW Civil and Administrative Tribunal (NCAT) if you’re based in NSW. For other states, different rules apply.

Generally there is a timeframe on when you can start the enforcement process. Again, your debt recovery lawyer or small business lawyer in Chatswood can advise you on this.

Here are some of the ways you can enforce the judgment:


There are two options with writs in NSW:

  • a writ for the levy of property, or
  • a writ for the delivery of goods

A writ for the delivery of goods means that goods need to be returned to you and a sheriff can seize these goods from the person who owes you money.

A writ for the levy of property is when the court makes an order that the sheriff can take and sell property belonging to the party who owes money to pay you back.

The sheriff will charge a percentage fee to execute the writ, however there is no fee associated with the court Notice of Motion to issue the writ.

Garnishee Order

A garnishee is an order to take money from the debtor’s wages or salary, or directly from their bank account.

In some instances, a garnishee order may also extend to anyone who holds money on the debtor’s behalf.

Examination Notice and Order

This approach involves asking the debtor to provide information on their financial position like income, expenses and assets.

An examination order is used when the debtor doesn’t respond in a certain time frame, where they must attend court to provide their financial position and information.

Once you have this information, it can help you assess whether to take further enforcement action and how.

Bankruptcy or Winding Up a Company

Considered an expensive way of enforcing a debt, if the debt is more than $10,000, you may consider applying to the Federal Court to make the other party bankrupt.

To wind up a company you must be able to prove it is insolvent and unable to pay their debts. Based on whether the other party responds, you may be able to follow this course of action by discussing your situation with a small business lawyer in Chatswood.

It’s also important to know that you have up to 12 years from the judgment date to enforce the judgment.

If you find yourself in a position where you’re owed money or an invoice has not been paid, contact TY Lawyers for a confidential discussion to discuss your options. TY Lawyers have years of experience in debt recovery and small business legal advice in Chatswood. 

Call our friendly team today on: 02 8007 0135.

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