Creditor (when you are owed money)

What can I do if I am owed money?

If someone owes you money, you can:

• contact them to discuss the debt
  
• negotiate
  
• send a letter of demand
  
• start court action if they refuse to pay.
  

You should try to discuss the debt with the debtor before going to court, as court proceedings can be timely and expensive.

If you speak to the debtor, you should keep details of your conversation, including the date, time and what was said. 

If you write to them you should keep a copy of the letter you sent. This information can be helpful if you need to start court proceedings.

You can also negotiate with the debtor about the debt. For example, you could negotiate a payment arrangement where the debt is paid off in instalments or accept a lesser amount to finalise the debt.

You can also try mediation through a Community Justice Centre, if there is a dispute.

If you are a business and the party that owes you money is also a business, you can try mediating through the Office of the Small Business Commissioner. 

If you reach an agreement with the debtor, you should put it in writing.

What if I don't have their ​​details?

It may be difficult to recover money owed to you if you don't have all the debtor's details. Usually, you will need to have certain types of information to start legal action.

For information, see Identify the other party in Making a claim on the My problem is about section of our website.

What if I don't have their details when I am owed money in relation to a motor vehicle accident?

If you are owed money as a result of a motor vehicle accident and you do not have details of the other driver, you might be able to request their details through:

• the police, if they attended the scene
  
• Transport for NSW (formerly known as Roads and Maritime Services or RMS).
  

For more information, see Car accidents on the My problem is about section of our website.

Can I recover a debt from a perso​n under 18?

There is no law that stops you from taking legal action against a person under 18. However, a person under the age of 18 is considered not to have legal capacity and there are certain rules you will have to follow.

If you are taking legal action against a person under 18, you should get legal advice.

Can I recover a debt from the parents of a person that is under 18?

Usually, parents are not responsible for paying any money the child owes unless the child was acting under their direction, with their authority, or if the parents were negligent in some way.

If you want to start court proceedings to recover a debt against the parent(s) of a child, you should get legal advice.

Can I take legal action to recover a d​ebt owed to me if I am under 18?

You can take legal action to recover a debt, but you must have a tutor (usually a parent or guardian) help you. The tutor can commence any legal proceedings on your behalf. The tutor must be represented by a lawyer unless the Court orders otherwise. 

There is a time limit for commencing legal proceedings, but it can vary depend on your type of claim.

You should get legal advice about any time limits that apply to you and about the process when a tutor is involved.​

Can I make a claim against a bankrupt person or liquidated company?

You can't start legal action or enforce a judgment against a bankrupt person or liquidated company.

If a bankrupt person or liquidated company owes you money, you should first contact the appointed trustee or liquidator. The trustee or liquidator may ask you to lodge a proof of debt form with details of the debt owed to you. After you lodge your proof of debt, the trustee or liquidator must decide your claim.

You should get legal advice about your situation.

How can I find out if someone is bankrupt?

If you are owed money, you may want to find out if the person who owes you money is bankrupt. This information may help you decide whether to take further action.

To find out if someone is bankrupt, you can perform a search using the Bankruptcy Register Search (BRS) on the Australian Financial Security Authority (AFSA) website.

You will have to pay a fee to perform a search.

For more information, see BRS Fees on the AFSA website.

How can I find out if a company is in liquidation?

If you are owed money, you may want to find out if the company owing you money is in liquidation. This information may help you decide whether to take further action.

To find out if a company is in liquidation, you can perform a search using Published notices on the Australian Securities & Investments Commission website. You can also search the company name on ASIC and it will normally have a note under their name stating in liquidation.

How do I write a letter of dema​​nd?

You can send a letter of demand to a person that owes you money.

The letter should state:

• how much money is owed
• why it is owed
• when it should have been paid
• how long the debtor has to pay it (it is best to give a reasonable amount of time such as 14 or 21 days)
• that legal action may be started if the debt remains unpaid and court costs and interest will be added to the debt.

A letter of demand can be handwritten, as long as it is easy to read, typed or sent by email. You should keep a copy of your letter.

For more information, see Letter of demand in Making a claim on the My problem is about section of our website.

Do I have to write a letter of demand?

There is generally no legal requirement that says you must send a letter of demand when trying to recover a debt, but it is a good first step before court action, as going to court can be expensive and time consuming.

If the defendant was given notice before you started court proceedings and still did not pay the debt, this may be taken into account in any costs application made during proceedings.

Should I start leg​al action?

There are some things you should think about before deciding whether to start legal action:

• whether you can resolve the dispute without going to court - by negotiating with the debtor, through mediation, or by sending a letter of demand
• the strength of your case - what evidence you have to show you are owed money, why the debtor may be disputing the debt, whether you have witnesses or documentation to support your case
• whether you can afford to pay any fees needed to start legal action, for example, the filing and service fees. Although these amounts can be added to your debt when you start legal action, usually you will need to pay them upfront
  
• whether you can afford and/or need a lawyer - if you are successful in your case you might be able to claim your lawyer's costs (although the amounts you can claim are capped in the Small Claims Division). If you lose you might have to pay the other party's costs (plus your own legal costs if you are represented)
• whether you can commit to the amount of time required for legal action - the Local Court aims to finalise most matters within 6 months
  
• whether the debtor has money to pay the debt if you are successful in your case - it is helpful to know what financial position the debtor is in. For example, if the debtor is bankrupt or in liquidation, or whether they have any income or assets.
• who you would need to take legal action against, for example an individual, business or company, and whether you have all of their details - see Starting a case in Going to court on the My problem is about  section of our website.

For more information, see Before starting a case in Making a claim on the My problem is about section of our website.

If you are not sure whether to start legal proceedings, you should get legal advice.

How do I start leg​​al action?

To start legal proceedings to recover money owed to you, you must file a:

• Statement of Claim (Form 3A or 3B).

For a copy of the form, see Approved civil forms on the Uniform Civil Procedure website.

You can file your Statement of Claim:

• online via the NSW Online Registry, or
• at your nearest Local Court.
  

You will need to pay a fee.

If you file your claim at the Court, you must give the registry the original Statement of Claim plus one copy. The registry will keep the original and return the copy to you with the Courts seal (stamp) on the first page. You will then need to make one photocopy of the statement for each defendant and arrange to serve it on each defendant.

For more information, including about preparing and filing a Statement of Claim in the Small Claims Division of the Local Court, see Starting a case on the My problem is aboutsection of our website.

If you want to start legal proceedings, you should get legal advice.

What is the NSW Onlin​​e Registry?

The NSW Online Registry is a website that you can use to complete and file forms and documents for the Local, District and Supreme Courts in NSW.

Some forms can't be filed on the NSW Online Registry. You should get legal advice before filing any forms.

For more information, see the NSW Online Court topic.

How can I serve a Statement of Claim?

There are strict rules about how a Statement of Claim must be served. These rules vary depending on whether the defendant (the person that owes you money) is:

• an individual (and whether they have legal capacity)
• an unregistered/registered business
• a company or partnership.
  

A Statement of Claim must be served on the defendant within 6 months of the date it is filed with the court.

There are strict rules about service if the defendant does not have legal capacity, such as:

• where they are under 18 years old, or
• where they can't manage their own affairs.

If you can’t serve the defendant, you may be able to apply for substituted service. That is, the Court’s permission to serve the defendant another way.

For more information, see Step by step guide - Serving a statement of claim on the My problem is about section of our website.

If you have problems serving the defendant, you should get legal advice.

What if the defendant cannot manage th​eir own affairs or is under 18?

The defendant does not have legal capacity if they:

• can't manage their own affairs, or
• are under 18 years old.

This means that they can't continue legal proceedings unless they have a tutor appointed. A tutor is usually an adult that can assist the defendant with the legal proceedings, for example, the parent of a child under 18 years old, the spouse of a person with a disability, or the NSW Trustee & Guardian, if they are managing the defendant's estate.

Unless a court orders otherwise, a tutor must have a lawyer represent them.

There are strict rules about service of documents for defendants that do not have legal capacity, including that:

• documents must be served on a tutor, if one has been appointed
• if there is no tutor appointed and the defendant is a minor, documents can be served on the defendant if they are over 16 years old, or on their parent or guardian or another adult that cares for them
• if there is no tutor appointed and the defendant is a protected person (according to the NSW Trustee and Guardian), documents must be served on the defendant's Financial Manager, carer or a person that the defendant resides with, if there is no Financial Manager.
  

Some types of documents, such as a subpoena or an order telling the defendant to do or not do something, must be served personally.

If you are taking legal action against a person that does not have legal capacity, you should get legal advice.

Can I claim inter​est?

You can claim interest in your Statement of Claim if the debt is over $1,000. The interest can be claimed from the time the debt became due until the date of judgment. This is called pre-judgment interest. 

If there was no contractual interest rate (a rate that was specified in an agreement between you and the debtor), you can claim the statutory rate set out in the Uniform Civil Procedure Rules. The interest rate usually changes on 1 January and 1 July each year. You can check the current interest rate by speaking to a court staff or checking Interest rates on the Local Court website.

For more information, see Step by step guide - Working out pre-judgment interest on the My problem is about section of our website.

If you win your case and get a judgment against the defendant, you may also be able to claim post-judgment interest. 

For information, see the FAQ Can I claim interest if the judgment has not been paid?

Can I claim​ costs?

You may be able to claim your lawyer's costs and any disbursements you have paid relating to the claim. Disbursements are other expenses you have to pay, such as fees for searches or an expert report.

The Court will decide whether to make the defendant pay you these costs, but the general rule is that the losing party will pay the legal costs of the winning party.

In the Small Claims Division of the Local Court, the winning party's lawyer's costs are restricted and you can only claim up to a maximum amount for different parts of the process. 

To find out the current scale of legal costs, speak to the Local Court registry or get legal advice. 

Can I amend the pleadings on a ​Statement of Claim?

You can amend the pleadings on a Statement of Claim that has already had been served on the defendant if it has been less than 28 days since the Statement of Claim was filed with the Court, and no date has been set for a hearing or trial. 

You can amend your claim once without needing the leave (permission) of the Court. After this, you will need leave each time you want to amend your claim.

If a hearing date has been set, you can only amend your claim if the Court makes an order that allows you to.

Your amended Statement of Claim must be served on the defendant.

If the defendant has already filed a Defence before you amended your claim, they have 14 days after the date of service to amend their Defence. If they haven't already filed a Defence, they will have 28 days from service of the amended Statement of Claim to file a Defence. 

Different rules apply if you want to amend the Statement of Claim to add, join or remove a party.

If you need to amend your Statement of Claim, you should get legal advice.

For more information, see Step by step guide - Changing the statement of claim on the My problem is about section of our website.

Can I apply for default judgment if the defenda​nt does not respond to the Statement of Claim?

If the defendant does not respond to the Statement of Claim within 28 days of being served, you can ask the Court to make a default judgment against them. This means that the Court will officially record that the defendant owes you money, without you having to give evidence at a hearing.

You have nine months after filing the Statement of Claim to apply for a default judgment. The Court will automatically dismiss the claim nine months after the Statement of Claim was filed if:

• no Defence has been filed
  
• no default judgment has been applied for, and
• proceedings have not been finalised.

If the Court does this, you will need to restart your case by filing a new Statement of Claim.

For more information about how to apply for a default judgment, see Step by step guide - Applying for default judgment on the My problem is about section of our website.

What if the defendant files​ a Defence?

If the defendant disputes your claim, the Court will send you a copy of their Defence. 

The Court will also tell you when you have to go to court for the hearing.

What happens in your matter will depend on whether your matter is in the:

• Small Claims Division of the Local Court
  
• General Division of the Local Court.
  

If you are in the Local Court Small Claims Division and the defendant has filed a Defence, see Pre-trial review on the My problem is about section of our website.

What if the defendant files a Cross Claim?

A defendant might file a Defence and a Cross Claim if they believe you or another person owes them money.

If you dispute the Cross Claim, you have 28 days from being served with the cross claim to file a Defence.

Cases involving Cross Claims can often be complex and it is best to get legal advice about your situation.

For more information, see Cross claims in Defendant's response on the My problem is about section of our website.

What happens at the pre​-trial review?

Once a Defence and/or Cross Claim has been filed in the Small Claims Division of the Local Court, the matter is listed for pre-trial review. A pre-trial review is usually held by a Registrar or Assessor, although in some cases it can be held by a Magistrate.

Pre-trial reviews in Small Claims Division matters are heard remotely unless an application has been made to, and granted by, the Court to allow an in-person appearance.

At the pre-trial review you will have the opportunity to clarify any issues in dispute and to negotiate an agreement with the defendant.

For more information, see Step by step guide - Preparing for the pre-trial review on the My problem is about section of our website

What if I don't go to the pre-tria​l review?

Pre-trial reviews in Small Claims Division matters are heard remotely unless an application has been made to, and granted by, the Court to allow an in-person appearance.

If you do not attend the pre-trial review the Court can deal with the matter without you. It can:

• adjourn your review to another date
• dismiss your claim 
• make certain orders against you, including a costs order according to a scale of fees in the Small Claims Division of the Local Court.

Are proceedings in the Local Court held in person or remotely?

Small Claims Division matters will be heard remotely unless an application has been made to, and granted by, the Court to allow an in-person appearance.

General Division final hearings will be held in person unless an application has been made to, and granted by, the Court to allow a remote appearance.

I want to appear in person for the hearing in the Small Claims Division of the Local Court. What can I do?

If you want to appear in person for the hearing you will need to email the registry at least five days before the date of the hearing. Your email should explain the reasons why you can’t attend remotely and seek leave to appear in person. 

It is up to the Court to decide whether to grant your application.

How do I prepare witness statem​ents for my small claims hearing?

Usually, witnesses do not need to attend court to give evidence in the Small Claims Division. They will generally only need to attend to give evidence in person if the Court made an order that they must attend.

Evidence will usually be given in the form of a written witness statement. The Court may have directed you to file written witness statements and provide the other party with a copy at least 14 days prior to the date of the hearing. Witness statements can include your own written statement, as well as anyone else who can provide a statement to support your case.

In some circumstances you can use the Affidavit form, however the rules for affidavits are more formal. If you do not know whether you should file an Affidavit or a Witness Statement, you should get legal advice.

The evidence in your witness' statement(s) can affect the outcome of your case. If you are not sure what to include in a witness statement, you should get legal advice.

For more information about preparing witness statements, see The hearing on the My problem is about section of our website.

Can a matter be heard in the Sm​all Claims Division if the interest, fees and costs plus the debt add up to more than $20,000?

If the amount of the debt, excluding fees, costs and/or interest, is under $20,000 it will be heard in the Small Claims Division.

Can my case be transferred from the Small Claims Division to the General Division?

Court cases that are started in the Small Claims Division can be transferred to the General Division if:

• the issues in the case are complex, difficult or of such importance that it is more appropriate for the case to be decided in the General Division, or
• there is a cross-claim for more than $20,000.

Cases can be transferred from the General Division to the Small Claims Division if:

• any complex, difficult or important issues have been resolved (either completely or partly), or
• it is appropriate to do so.
  

What happens at a hearing in t​he General Division of the Local Court?

If the defendant files a Defence in the General Division of the Local Court a call-over will be held. The Court may:

• adjourn the matter (put off to another day)
• refer the matter to mediation
• refer the matter to arbitration 
• dismiss the statement of claim or strike out the defence
• set the matter down for a hearing.

If the matter is set down for hearing, you will be directed to file and exchange written statements or affidavit evidence. You can be ordered to pay costs if you do not comply with these directions.

At the hearing each side has the opportunity to question witnesses about their statement or affidavit. You will also get to make submissions about the evidence that supports your Defence/Cross Claim. After this, the Court will decide whether the defendant owes you the money and any Cross Claim.

For more information, see Local Court - General Division on the My problem is about section of our website.

If you are in the General Division, you should get legal advice about preparing for the hearing.

What if the defendant and I hav​​e reached an agreement about my claim?

If you have served the defendant with a Statement of Claim and there is no judgment against them, you can:

• file a Consent Judgment (Form 44). Your agreement will become an order of the Court and can be enforced as a judgment. If you have a pre-trial review or hearing scheduled you can also give a copy of your agreement and the Consent Judgment Form to the Registrar, Assessor or Magistrate.
  
• file a Notice of Payment (Form 34), if the defendant has paid the claim in full, including fees, interest and costs. When this form is filed it operates as a permanent stay and this means you will not be able to take further legal action to recover the debt.
  

For copies of the forms, see Approved civil forms on the Uniform Civil Procedure Rules website.

All relevant parties must be notified of an agreement before entering into a consent judgment.

If you and the defendant reach an agreement but don't file any further documents with the court, the Statement of Claim will lapse nine months after it was filed if:

• no Defence or Cross Claim is lodged by the defendant
• no default judgment is obtained
• proceedings have not been finalised (through the Court).

This means that you would need to re-start legal action if the debt isn't paid according to your agreement.

For more information, see Settling your case on the My problem is about section of our website.

It is a good idea to get advice about how to formalise an agreement you reach with the defendant.

Can someone else speak on m​y behalf?

If you need an interpreter you will need to arrange this yourself and pay any costs.

If you want someone other than a lawyer to represent you, you can ask the Court for permission and explain your reasons. It is uncommon for a court to give permission for someone else to speak on your behalf if they're not a lawyer.

If you lack capacity to represent yourself or instruct a lawyer, another adult can apply to the Court to run the case on your behalf as your tutor or next friend. The tutor must be represented by a lawyer, unless the Court orders otherwise.​

Will the Court arrange an interpr​eter for me?

If you have proceedings in a civil matter, you will need to arrange and pay for your own interpreter.

If a lawyer helped me, what legal costs can be awarded in the Small Claims Division?

In the Small Claims Division of the Local Court, there is a limit on the amount of legal costs that can be awarded depending on:

• the total amount of the claim that the lawyer assisted with
  
• what happened during the proceedings.
  

If the lawyer helped you and the proceedings ended without the Court giving a judgment after a hearing, the maximum amount of legal costs that can be awarded are as follows (including the preparation costs for the claim):

If the lawyer helped you and proceedings ended with the Court giving a judgment after a hearing, the maximum amount of legal costs that can be awarded are as follows (including the preparation costs for the claim):

If you, or the defendant, do not accept a genuine offer to settle a dispute and the refusal was not reasonable, the court can increase the maximum amount of legal costs for giving a judgment after a hearing by 25%.

How much will a lawyer ​charge me?

There is no set amount a lawyer can charge you. The costs can vary and are unregulated. You should speak to a lawyer about their fees before asking them to work on your matter. In certain circumstances they also have to provide cost disclosure.

For more information about cost disclosure, see the Dealing with lawyers​ topic.

If you take court action, legal costs may be awarded in certain circumstances, for example, if you are successful with your case. These costs are capped in the Small Claims Division.

My case was finalised and I received a Notice of Orders made from the Court. The Defendant was ordered to pay me an amount. Do I have to do anything?

A Notice of Orders made is a document sent to the parties by the Court after the case. It tells you what order or judgment was made by the Court and if you need to take any action.

If you are the Plaintiff and the Court ordered the Defendant to pay you an amount, you generally do not have to do anything when you receive a Notice of Orders made. 

If the Defendant hasn’t paid you the amount ordered after the time has passed, see the FAQ ‘When can I start enforcing the judgment debt?’

When can I start enforcing the judgment debt?

You can start enforcement if the other party does not do what is ordered in the judgment within the time given in the judgment.

You have 12 years from the date of a judgment to enforce it.

If you want to enforce a judgment older than this, you should get legal advice.

How long do I have to enforce t​he judgment debt?

You can enforce the judgment debt up to 12 years after the date of the judgment.

If it has been longer than 12 years since judgment was made, you will need to get the court's permission to enforce the judgment out of time.

For more information, see Enforcement on the My problem is about section of our website.

You should get legal advice if you are in this situation.

Can I claim interest if the judgment ​has not been paid?

The defendant is required to pay a judgment debt within 28 days of the judgment being made. If the judgment amount is unpaid after the 28 days has passed, the defendant will need to pay interest on the unpaid amount. This is called post-judgment interest. 

You can check the current interest rate by speaking to court staff or checking Interest Rates on the Local Court website.

For information on working out interest, see Step by step guide - Working out post-judgment interest on the My problem is about section of our website.

How do I enforce a judgment ​debt?

If the judgment debt is not paid, you can enforce the judgment to recover the money. You can:

• send an Examination Notice
  
• get an Examination Order
  
• garnish the judgment debtor's wages/salary, their bank account or a third party who owes them money
  
• get the Sheriff to seize and sell property to pay the judgment
  
• apply for the judgment debtor to be declared bankrupt, if the judgment is over $10,000.
  

Interest is payable on the judgment debt if it's not paid within the date for payment (usually 28 days unless stated otherwise).

Before you take action to enforce the judgment, you should consider whether the defendant has any income or assets to pay the debt or pay for the value of the goods, if the goods can’t be returned.

You will have to pay fees for some types of enforcement action. These fees will be added to the judgment debt, but if the defendant cannot pay you, you may waste your money. 

For more information about how to enforce a judgment debt in the Small Claims Division of the Local Court, see Enforcement on the My problem is about section of our website.

If you are not sur​​e what enforcement action is best to take in your situation, you should get legal advice.

Can I use more than one enforcement action at the same time?

There is nothing that stops you from taking more than one enforcement action at the same time. However, if you do this:

• it may be confusing for the judgment debtor and the Court
  
• you may have to pay more court fees.

If you are unsure of which enforcement action to take, you should get legal advice.

If a judgment debtor applies to the Court to stay (stop) enforcement action and it is successful, this will stop all enforcement action.

Can I send an Examinatio​n Notice?

You can send the judgment debtor an Examination Notice asking them to answer questions about their financial situation. If they fail to provide answers to your questions, or don't provide sufficient information, you can ask the Court to issue an Examination Order against them.

You need to complete an:

• Examination notice for individuals (Form 51), or
  

• Examination notice for a company (Form 52)
  

When you have completed the form, you can send it to the judgment debtor. You must give the judgment debtor at least 28 days to respond to the Examination Notice before applying to the court for an Examination Order.

For copies of the forms, see Approved civil forms on the Uniform Civil Procedure Rules website.

For more information, see Step by step guide - Examination notice on the My problem is about section of our website.

What is an Examina​tion Order?

An Examination Order tells the judgment debtor that they must attend court to answer questions about their financial situation. 

The order can require them to bring along specific documents such as bank statements, pay slips, tax returns, car registration and bills. If the judgment debtor does not attend court, you can apply to the Court for a warrant to have them arrested and brought to court to be questioned.

You can only apply for an Examination Order if the judgment debtor:

• did not respond within 28 days to an Examination Notice, or
• failed to provide sufficient information or the requested documents with an Examination Notice.

For more information, see Step by step guide - Examination order on the My problem is about section of our website.

Can I arrange for the Sheriff​ to seize their property?

If the judgment debtor does not pay a judgment debt, you can apply to the Court for an order for the Sheriff to seize and sell their goods at auction. This order is called a Writ for levy of property.

The money from the sale of the goods is used to pay the judgment debt owed to you.

There are rules around how property is seized, and what the Sheriff can and can't take. 

For more information, see Step by step guide - Writ for the levy of property on the My problem is about section of our website.

What can I do if the Sheriff has been refused entry to the premises and can’t execute the writ for levy of property?

If the Sheriff has been refused entry to the premises, you may need to apply for a court order authorising the Sheriff to enter the premises to take the goods. 

You will need to complete:

• a Notice of motion (Form 20)
• an Affidavit (Form 40) 
• a Notice of non-levy (received from the Sheriff if unable to enter the property).

For a copy of the forms, see Approved civil forms on the Uniform Civil Procedure Rules website.

You will need to show the Court that:

• there is likely to be property owned by the debtor in the premises
• the Sheriff has been refused entry to the premises, and
• there is no other option available to pay the debt.
  

If the Court grants the order, the Court will give a copy of the order to the Sheriff’s Officer.

For more information, see Enforcing writs for levy of property or property seizure orders on the Courts and Tribunal Services NSW website.

What is a garnishee ​order?

A garnishee order is a court order that allows you to recover the judgment debt from:

• the debtor's wage or salary
• the debtor's bank account, or
• a third party who owes money to the debtor.

To apply for a garnishee order, you need to complete a:

• Notice of Motion for​ a Garnishee Order (Form 69)
  
• Garnishee order for Wages or Salary (Form 71) 
• Garnishee order for debts (Form 70)

After you file these forms at court, you need to serve the sealed (court stamped copy) on the garnishee. The garnishee will be the bank, if you are garnishing a bank account, or the employer, if you are garnishing a wage.

For copies of the forms, see Approved civil forms on the Uniform Civil Procedure Rules website.

For more information, see Garnishee orders in Enforcement on the My problem is about section of our website.

How much detail do I need about a garnishee and their relationship with the judgment debtor?

In your application for a garnishee order, you need to include:

• what money is, or is reasonably likely to be held by the garnishee for the judgment debtor, and
• any evidence you have to support your application.

If you do not provide enough detail, the Court may refuse your application. If you do not have enough information, you can send the judgment debtor an Examination Notice.

For more information, see Garnishee orders in Enforcement on the My problem is about section of our website.

Can I use one form to garni​sh multiple bank accounts?

If you want to garnish bank accounts held with different banks, for example, a St George account and a Commonwealth Bank account, you need to complete separate forms for each garnishee order.

How much money can be taken out of the debtor's bank account?

When a bank account is garnished, the debtor must be left with a minimum balance amount. The minimum balance amount is referred to as the 'weekly compensation amount'. The weekly compensation amount is currently $587.50 per week (as at 1 April 2024). Any amount over that may be taken.

If a person is getting Centrelink payments into their bank account, the bank must leave an amount called a saved amount or the minimum weekly compensation amount, whichever is higher. 

For more information, see the FAQ What if the judgment debtor is on a Centrelink payment - can this be garnished?

If the debtor's bank account has a balance of less than the minimum weekly compensation amount plus $20.00, the bank does not have to comply with the order.

What if the judgment debtor is​ on a Centrelink payment. Can this be garnished?

If Centrelink payments are being paid into a bank account, and you get a garnishee order on that bank account, you can recover money to satisfy the judgment debt if the judgment debtor has more money in their account than the saved amount or the minimum weekly compensation amount, whichever is higher.

The minimum weekly compensation amount is currently $587.50 per week (as at 1 April 2024). 

The saved amount is calculated by adding the total amount of payments the person would have received from Centrelink in the 4 weeks immediately before the garnishee order was made and deducting the withdrawals the person made in that 4 week period.

For example, if the person receives $200.00 a week in the 4 weeks before the garnishee order was made, and withdraws $150.00 each week, the saved amount would be ($200.00 x 4) less ($150.00 x 4) = $200.00.

In most cases it can be very difficult to recover money with a garnishee order if the judgment debtor is on a Centrelink payment. You could consider other enforcement action or getting more information about the judgment debtor's financial position, for example, by sending an Examination Notice. 

How do I work out what amount I will get from a garnishee order if I don't know wha​​t money is deposited into o​r withdrawn from the debtor's ​​​bank account?

It is up to the garnishee to consider how the order can be attached to a bank account. The garnishee is the bank or financial body the order is served upon.

As a creditor, you might not have information about the person's bank account or financial information, for example, where the account is held, or whether there are savings in the account. It may be difficult to work out whether a garnishee order on the account would be helpful in recovering money to satisfy the judgment debt. 

If you are in this situation you could consider sending an Examination Notice to the judgment debtor or getting legal advice about any other options that apply.

How do I dispute an instal​ment order?

When a judgment debtor applies to pay the judgment in instalments, the application is dealt with by the Court in chambers. This means you and the judgment debtor will not be present when the order is being made. The Court will consider the application carefully and will notify you if it decides to make an instalment order allowing the judgment debtor to pay the judgment off. 

You will be given 14 days from the date of the instalment order to object to the order if you believe the amount is not enough.

You need to complete a Notice of motion - Objection to Instalment Order (Form 50).

After you file this form, the matter will​ be set down for a hearing. It is up to the Court whether to make the order, vary or dismiss it.

You must attend court for the objection hearing, otherwise your objection may be dismissed.

For a copy of the form, see Approved civil forms on the Uniform Civil Procedure Rules website.

Can I apply to vary the instalment order if the debtor's financial situation improves?

If you have grounds to show that a judgment debtor's financial situation has improved since the instalment order was made, the Court can consider an application to vary an instalment order.

If the Court grants another order, it replaces the first one.

If the Court dismisses your application, you may have to pay the debtor's legal costs.

Can I appeal a decision of the​ Local Court?

There are very limited grounds to appeal a decision of the Local Court.

In the Small Claims Division, an appeal can only be made to the District Court if:

• you were denied natural justice, for example, you were not being given a fair chance to present your case, or
• the Court did not have jurisdiction to decide your matter.

Appeals from the General Division of the Local Court are made to the Supreme Court of NSW but can only be made on limited grounds.

You have 28 days from the date of judgment to appeal. If you want to appeal a Local Court decision, you should get legal advice.

I have a judgment from a court in another S​tate and want to enforce it in NSW. Can I do this?​

If the debtor lives in NSW but you obtained judgment from another State or Territory, you can register your judgment with the equivalent court in NSW. For example, if the judgment is less than $100,000 you can register the judgment in a NSW Local Court. 

To register your judgment, you must:

• get a sealed copy of the judgment, if you don't have one already
• complete a Form 45 Registration/filing of certificate of judgment or order
  
• pay the filing fee. For more information, see Fees on the Local Court website.
  

You can complete your form:

• online via the NSW Online Registry
• in writing.
  

For a copy of the form, see Approved civil forms on the Uniform Civil Procedure Rules website.

Once you have registered the interstate judgment with a NSW Local Court, you can take enforcement action in NSW to recover the unpaid money from the debtor.​

For more information, see Step by step guide - Enforcing interstate judgments on the My problem is about section of our website.

I have a judgment from a NSW court and want to enforce it in another State. Can I do this?

If the debtor lives in another State or Territory but you obtained judgment from NSW, you can register your judgment with the equivalent court in the other State. For example, if the judgment is less than $150,000 and the debtor lives in Queensland, you can register the judgment in a Queensland Magistrates Court.

To register your judgment, you should:

• contact the equivalent court in the other State
• complete any relevant court forms
• provide a sealed copy of the judgment and pay the filing fee.

After registering the judgment, you should be able to take enforcement action in the other State.

For further information, you should contact the relevant court or get legal advice in the State where you want to enforce the order.

For more information, see Registration of interstate judgments on the Magistrates' Court of Victoria website, if the debtor lives in Victoria.

For more information, see Registering interstate judgments on the Queensland Courts website, if the debtor lives in Queensland.

Can I enforce an order from the NSW Civil and Administrative Tribunal? 

If you have an order for the payment of money from the NSW Civil and Administrative Tribunal (NCAT) and the respondent does not pay, you can register the order as a judgment in the NSW Local Court.

To do this, you will need to:

• get a certified copy of the order from NCAT
• complete Form 45 Registration/filing of certificate of judgment or order
• pay the filing fee. For more information, see Fees on the Local Court website.

You can complete your form:

• online via the NSW Online Registry
• in writing.
  

You can get a copy from Approved civil forms on the Uniform Civil Procedure Rules website, or your nearest Local Court.

Once the NCAT order has been registered as a judgment of the Local Court, you can enforce, for example, by applying for a garnishee of wages or bank accounts, or a writ for the levy of property.

For more information about how to enforce NCAT orders in the Small Claims Division of the Local Court, see Step by step guide - Enforcing NCAT orders on the My problem is about section of our website. 

I have an order from a tribunal in another State and want to enforce it in NSW. Can I do this?

To enforce a tribunal order from another State or Territory in NSW, you may have to register the order in the correct court of that State or Territory first.

For example, if you have a money order for $50,000 from the Queensland Civil and Administrative Tribunal (QCAT), you need to register the order at your local Magistrates Court first. Then you can take steps to enforce the judgment of the Magistrates Court in the Local Court of NSW.