Using the Legal System to collect debts in Tasmania

This is the fifth article in a series where we will go through using the Legal System to Collect Debts in all States and Territories.

To find out about  States and Territories previously reviewed select the below links, otherwise read on;
- South Australia
- Victoria
- New South Wales
- Queensland

Statement of Liquidated Claim

After expiry of default notice the initiating action in the Magistrates’ Court is a Claim.

• Can be served via registered post or in person
• Can apply for Judgment 21 days after service

*Costs between $233.00 to $695.90 depending on amount

This can be compared against the other states and territories here.

 

Judgment

• This action formally registers the debt with the court and allows further collection action.

• Judgment stands for 12 years.

*Obtaining Judgment costs between $45.00 to $64.00 depending on amount of claim (undefended)

This can be compared against the other states and territories here.


Once Judgment granted then 5 choices of enforcement proceeding are possible.

Oral Examination

• This is used where you are unaware of Debtors Assets, Employment.
• Documents are personally served on the debtor to attend court.
• Hearing is conducted by the Magistrate and debtor must provide details of income expenses and assets.
• If debtor doesn’t attend then you can apply for a Warrant.
• Advice from our Solicitors is that this is not an effective action.

This can be compared against the other states and territories here.

*Cost is $120.00 for the Court Application + preparation (attendance charges additional) (undefended).

Garnishee Order.

• Two types – Attachment of Wages or Salary and Attachment of Debts
• Must know the financial institution details or employers details
• documents are served on the financial institution or employer
• Attachment of Wages or Salary – Provisional Order must be served on the employer and debtor. Debtor  and employer have 21 days in which to lodge a dispute to the claim.

After 21 days a Final Garnishee Order may be made directing the employer to remit monies. Amount is determined by the Magistrate however typically an Order is made for 20% of the net earnings. Attachment of Wages or Salary remains in force for as long as the debtor remains employer / debt satisfied.

• Attachment of Debts – As above however with the following exceptions – Final Garnishee Order attaches to any and all income and no determination is made by the Magistrate. Net earnings are not taking into consideration.

* Cost is $201.00 for the Court Application + preparation (attendance charges additional) (undefended).

This can be compared against the other states and territories here.

Warrant to Seize & Sell Property

• Bailiff attends property of debtor to demand payment and tag any assets of value.

• If payment cannot be made goods to the value of the debt are seized and sold.

*Cost is $206.00 for the Court Application + preparation (Bailiff may incur additional costs) (undefended)

This can be compared against the other states and territories here

Caveat

• This is used where you know that the debtor has an interest in a property.
• Property cannot be sold by the debtor unless there is insufficient equity to satisfy your interest.

*  Cost is $250.00 for Court Application (undefended)

 

Bankruptcy

• Judgment must be obtained then a bankruptcy notice served.
• Once Bankruptcy notice has expired then Bankruptcy can be applied.
• Once bankruptcy obtained all debts owed by the debtor are captured under the Bankruptcy.

*Cost is a minimum of $2500.00 if matter is undefended (after Judgment costs)

 

* Important Note: All costs are estimates as at 20/04/2011 and do not include costs of counsel and preparation for hearing.

 

You can download this workflow here.

Tasmanian Legal System and Debt Collection (46 KB)