In a previous blog post, we discussed what garnishee orders are and how creditors can use them to recover a debt. Here, we will be looking at how garnishee orders are obtained and processed in the states of New South Wales and Queensland. The processes are quite similar, but there are a few differences that are worth noting. Read on to find out more.
A garnishee order is a court order that allows a lender to recover a judgement debt from:
This court order is typically addressed to the garnishee—the third party that is holding money on behalf of the judgement debtor.
There are two main types of garnishee orders:
Obtaining a garnishee order in New South Wales involves following the five-step process outlined below:
Step #1: Obtain the right forms
Step #2: Fill out the forms
Step #3: File the forms
Step #4: Serve the garnishee order
Step #5: Garnish wages or salary / debts
Take note that some details involved in this process (such as the forms and information needed) will differ slightly depending on the type of garnishee order you are applying for.
In New South Wales, creditors are required to send the garnishee a sealed (stamped) copy of the garnishee order. However, they do not have send a copy of the order to the judgement debtor.
Here are some other important points you need to keep in mind enforcing a garnishee order in NSW:
In Queensland, a garnishee order for wages or salary is called a “warrant of redirection of earnings”, while a garnishee order for debts is officially known as a “warrant for redirection from financial institutions”.
The process of obtaining a warrant for redirection in this state is similar to NSW in that creditors are required to fill out, sign, and file certain forms. Creditors must also provide enough information proving that the debtor can afford the redirection of funds. The registrar needs to be satisfied that the deductions will not cause unreasonable hardship on the debtor.
In Queensland, creditors are required to provide a copy of the enforcement warrant to both the garnishee and the debtor.
Here are some other key differences you must remember:
“To the Manager:
If Social Security benefits are paid into this account, please ensure that the saved amount, as stated in the Social Security Act, is protected from this Enforcement Warrant for Regular Redirection.”
Slater Byrne would be happy to guide you through the whole process of obtaining a garnishee order. Give us a call at 1300 794 290.
Liam White joined the Slater Byrne Recoveries team in early 2013. He has worked across the credit & dispute resolution industry for a number of years. He is currently working in a Marketing/Head of Sales capacity at Slater Byrne Recoveries.
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