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Chasing a Debtor with No Assets

Your dilemma − you have a judgment order against a debtor but you know they have no assets. How can you enforce your order? If the debtor is earning an income, you can apply for an Attachment of Earnings Order to require the debtor’s employer to deduct set instalment payments from the debtor’s salary and redirect them to you, the judgement creditor.

Limits on Attachment of Earnings Orders An attachment order will not be made if :

  • The debtor’s only source of income is Centrelink benefits; or
  • The debtor is self-employed. No more than 20% of the debtors wages can be redirected to the creditor.

To obtain the Order the creditor must first provide the Court:

  1. Debtor’s employment details
  2. The amount they are paid
  3. Frequency of their salary payments.

A Summons can be filed with the Court to compel an employer to produce these details if they refuse a reasonable request for the information.

Attachment of Earnings hearings are conducted before a Magistrate or a Registrar. The creditor is required to be represented at the hearing.

The debtor and employer are both served with the formal order and payments must commence seven days after service.

For further information contact our litigation team.