Using the Legal System in the Northern Territory to Collect Debts

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

 Statement of Liquidated Claim

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

• Must be served personally
• Can apply for Judgment 28 days after service

* Small Claims under $10,000 are deal with in the Small Claims jurisdiction of the Local Court.

* Costs between $220.70 to $1,237.40 depending on amount of Claim for the Court Application + preparation (attendance charges additional) (undefended).

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 $459.80 to $919.60 depending on amount of Claim (undefended)

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

Once Judgment granted then 4 choices of enforcement proceeding are possible.

Summons of 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 you can apply for a Warrant.

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

*Cost is $190.70 for the Court Application + preparation (attendance charges additional) (undefended).

Attachment of Earnings

• Two types – Attachment of Earnings and Garnishee Order
• Must know the financial institution details or employers details
• Documents are served on the debtor 14 days prior to the allocated hearing
• Debtor must complete and return to the Court declaration of financial circumstances no later than 7 days before the allocated hearing and serve a copy on the Creditor
• A copy of the Order must be served on the employer. Deductions must commence within 7 days following service.

* Cost is $190.70 to $330.40 depending on amount of Claim for the Court Application + preparation (attendance charges additional) (undefended).

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

Warrant of Seizure and Sale

• 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 start at $403.00 (undefended)

* Bailiff costs start at $352.00 and may include additional fees. Only $100.10 can be claimed against the debtor as an enforcement expense

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 September 2011 and do not include costs of counsel and preparation for hearing 

You can download this workflow here -

Workflow of the NT Legal system for Debt Collection (46 KB)