Using the Legal System to collect debts in South Australia

This is the fourth article in a series where we will go through using the Legal System to Collect Debts in all States and Territories. Previously we have compared specific legal actions between states and territories.

Included in this is a workflow to assist in the understanding of the process. The workflow is located after the article. You may also like to download a copy of this workflow for you own records. A link for the download is at the end of this article.

Statement of Claim

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

• Can be served via post or in person

• Can apply for Judgment 21 days after service

*Costs from between $292 to $1,102, depending on amount & cost of service (can be higher)

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

 

Judgment

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

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

Investigation Summons

• 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 Registrar and debtor must provide details of income expenses and assets.

• If debtor doesn’t attend an Arrest Warrant is issued.

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

*Cost is between $136 & $146 depending on the amount of debt owed as a minimum - solicitors may charge more than scale increasing the cost. For undefended matters. Does not include service.

Garnishee Order

• Must know employment details.
• Consent must be received from the debtor personally (verbally or in writing).
• Documents must be served on the debtor and employer.
• Registrar will look at debtors income and expenditure prior to making ruling as to amount.

*Cost up to $126 - solicitors may charge more than scale increasing the cost. For undefended matters.

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

Warrant of Sale

• Sheriff 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.

*Costs from $100.00 - $269.00 (undefended) depending on debt size. Does not included poundage. Increases where Bailiff required to travel more than 12km from registry.

This can be compared against the other states and territories here
 

Charging Order

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 20/06/2011 and do not include costs of counsel and preparation for hearing.

Workflow of using the Legal System in South Australia to recover your debts

Download of this workflow;

Using the Legal System in SA to Collect Debts (38 KB)