Using the Legal System to collect debts in Victoria 

This is the first 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.

Complaint

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

• Must be served in person

• Can apply for Judgment 28 days after personal service

*Costs between $311.10 to $1,393.30  depending on amount

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

• If debtor doesn’t attend then an arrest warrant is issued.

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

*Cost is up to $4410 depending on the amount of claim (undefended).

Attachment of Earnings.

• Must know employers details.

• documents are served on employer, debtor to obtain how much debtor is paid and when.

• Hearing is held in front of the Registrar with debtor (employer as well if details are not supplied to court)

• Maximum amount that can be taken out of Debtors income is 20% of net income.

• Registrar will look at debtors income and expenditure prior to making ruling as to amount.

*Cost is up to $1417.00 depending on amount of claim (undefended)

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

Warrant to seize Property

• This is the most commonly used form of enforcement procedure

• Sheriff attends property of debtor and demand payment.

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

• Debtor can lodge an instalment order but this is breached then information provided can also be used in attachment of earnings.

*Cost is up to $446.60 depending on amount of Claim (undefended)

This can be compared against the other states and territories here
 

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 30/03/2011 and do not include costs of counsel and preparation for hearing.

Workflow of using the Legal System in Victoria to recover your debts

Download of this workflow;

Workflow of using the Victorian Legal System to collect debts (36 KB)