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Once a court order (judgment) has been made against you for a debt, there are various steps a creditor (also known as a judgment creditor) may take to recover the money owed

A judgment creditor may serve upon a judgment debtor a summons to appear in Court to be questioned about the debtor’s financial position. Failure to obey the summons may result in your arrest.

Instalment orders A judgment debtor or – more commonly – a judgment creditor may apply to the Court for an order to pay a judgment debt by instalments. While not subject to any formal policy, an order will usually not be made unless the debt – if is less than $10,000 – will be paid off within 3 years. Penalty interest on the debt will continue to accrue while the instalment order is in place. If an instalment order is in place and is being complied with, or if a copy of an application for an instalment order has been served upon the judgment creditor, all other methods of enforcement of the judgment are blocked.

An instalment order will not be made without the consent of the judgment debtor where the income of the judgment debtor is derived solely from social security benefits: JDRA, s 12. Warrant to seize property A warrant to seize property is an order to the Sheriff to seize and sell goods belonging to the debtor unless the debtor pays the amount stated in the warrant. A debtor is entitled to refuse entry to the Sheriff. The Sheriff cannot seize any property which could not be taken from a bankrupt. This protects necessary household items and a car worth less than $6150 (this amount is indexed annually). If you own real estate, the creditor may apply to another Court to have the Sheriff sell your share of your house or land. Attachment of earnings A judgment creditor may apply to the Court for an order compelling a debtor’s employer to deduct instalments from the debtor’s salary and pay them to the creditor. Income received as a social security payment cannot be subject to attachment

Further information and assistance Financial and Consumer Rights Council Ph: (03) 9663 2000, or 1800 134 139 for country callers To find your local financial counsellor who can give free advice and assistance with credit and debt problems, negotiating with creditors and budgeting.

Warning: This fact sheet is for information only and should not be relied upon as legal
advice. This information applies only in Victoria, Australia and was updated 31 May 2007.