20 Dec What is An Enforcement Warrant?
Pursuing an outstanding debt through the court system is a last resort. The process is time consuming, complex and costly.
If you decide to use the court system, you can ask the court to issue several types of Enforcement Warrants. These warrants allow you to recover your debt directly, rather than relying on the debtor’s cooperation.
In this article, we’ll discuss the common types of enforcement warrants and how they can be used to recover a debt through the courts.
Queensland’s Debt Recovery Framework
As a creditor, you have a legal right to recover any debts you’re owed. If someone can’t or won’t pay, you can negotiate with them, engage a debt collection agency and/or pursue repayment through the court system.
Debt disputes are handled by the following courts in Queensland:
If you do go to court, you and your debtor will have a chance to argue your case and present evidence at a hearing.
If you are successful, the court will issue a judgement against the debtor, requiring them to pay their debt. You become the judgement creditor if the court enters a judgement in your favour.
As the judgement creditor, you can make an application for enforcement warrants to recover the money you’re owed.
What is an Enforcement Warrant?
An enforcement warrant is used to enforce a court order or judgement against a debtor. The warrant allows you to collect any money you are owed as part of the court order or judgement.
There are five main types of enforcement warrant in Queensland:
A redirection of earnings (or garnishee order) is served to a third party who owes money to the debtor (usually an employer). The third party is authorised to redirect part of the debtor’s earnings to the creditor.
Enforcement options depend on your location. Each Australian state has its own procedures surrounding enforcement warrants. Visit your local Courts website for more information:
Enforcement Hearings
Recovering money from an uncooperative debtor is challenging. Courts go to great lengths to ensure that enforcement warrants don’t cause undue hardship. However, they can only prevent undue hardship if the debtor’s financial position is fully understood.
Debtors are typically required to provide information about their financial situation during court proceedings. This information is used to determine how the debt is repaid.
If the debtor does not or will not provide this information, you can apply for an enforcement hearing. At an enforcement hearing, the creditor can request information about the debtor’s:The creditor and debtor are both required to attend enforcement hearings. The debtor may be arrested if they fail to attend.
Who Can Apply for an Enforcement Warrant?
An enforcement warrant can be obtained by the judgement creditor. You are a judgement creditor if a court has entered a judgement in your favour.
To become a judgement creditor, you must apply for a hearing with the relevant court. The relevant court depends on the amount of money you’re owed.
Time Limits to Apply for an Enforcement Warrant
You can apply for an enforcement warrant within 6 years of the judgement or order. The warrant expires after 1 year, but it can be renewed if required.
These timeframes are generous, but obtaining an enforcement warrant can be a lengthy process. It’s important to work with a debt collection agency to ensure you’re acting within time limits and meeting your obligations as a judgement creditor.
How to Respond to an Enforcement Warrant as a Debtor
If you are a debtor and you are served with an enforcement warrant, there are two ways you can prevent the enforcement warrant from being carried out:
You can ask the court to order payment by instalments. The court will consider this if you are employed and you are capable of paying your necessary living expenses while servicing the payments.
You also have the option of appealing a judgement entered against you based on its merits. An appeal may not affect an enforcement warrant that has already been issued.
Manage the Collections Process With Dynamic Commercial Collections
Obtaining an enforcement warrant is the last resort when recovering debt. The most cost and time effective solution is to work with a debt collection agency.
Dynamic Commercial Collections is a debt collector with offices in Brisbane, Bundaberg and Perth. We use ethical and debt collection techniques and have a 95% success rate in recouping outstanding debts.
While we recommend avoiding court wherever possible, we can also provide support if legal action is required. Contact us to find out more about enforcement warrants and other debt collection options.
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