Enforcement is what happens after a creditor has obtained a court judgment but the debtor has not paid. The judgment itself does not automatically transfer money — it gives the creditor the legal right to use a range of mechanisms to compel payment from the debtor's assets, income or funds held by third parties.
Common enforcement mechanisms in Australia:
- Writ of execution — a court officer (such as a sheriff) is authorised to seize and sell the debtor's personal property to satisfy the judgment.
- Garnishee order — a court order directing the debtor's bank or employer to pay money to the creditor directly. See the article on garnishee orders for more.
- Charging order — a court order that secures the judgment debt against the debtor's interest in real property, preventing sale or refinance without satisfying the judgment.
- Examination order — a court order requiring the debtor to attend court and answer questions about their assets and financial position, to assist the creditor in choosing the most effective enforcement method.
- Bankruptcy or winding-up proceedings — in serious cases, a creditor with an unsatisfied judgment may apply to have an individual debtor declared bankrupt or a company wound up.
Enforcement is costly, time-consuming and public. Resolving a debt before enforcement is reached is almost always in the debtor's interest. If enforcement has already begun, contact us to discuss what options remain.
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