Many legal minds making NZ LAW work

We are an association of independent legal practices, proactively sharing ideas and expertise for the benefit of our clients.

How to Recover Undisputed Debts

Published: 7th September 2017

Author: Emily Sutton, Breaden McCardle Lawyers

Published in: Commercial e.Speaking | #47

When the court makes a decision that an individual or business is owed a debt, it issues a judgment order telling the debtor that they must pay the creditor. However, often creditors are left wondering what happens if the debtor doesn’t pay. Find out how the court can assist you in recovering an undisputed civil debt.

Collecting civil debt

The process of collecting civil debt if the debtor doesn’t pay is called ‘civil enforcement’. A creditor can only initiate civil enforcement where a court or tribunal has ordered a debtor to pay a civil debt. The court doesn’t enforce judgment orders automatically; a creditor must select the appropriate enforcement actions and manage the process independently, or with the assistance of a lawyer. When you make an enforcement application, you can claim interest on civil debt that’s more than $3,000. If your order is more than six years old, you may need the court’s approval before taking enforcement action.

You must know a debtor’s correct address before the court can take some enforcement actions on your behalf. If you don’t have the debtor’s address, you can:

  • Try to find the address yourself
  • Make a confidential address information request with the Ministry of Justice, or
  • Enquire with a government agency under the Official Information Act 1982.

Enforcement process

There are a number of ways that the court can help you to enforce a civil debt. These include:

  • Assess the debtor’s finances on paper: a financial statement for the debtor can be completed by you or by the debtor, if you have sufficient information about the debtor. This can be useful if the debtor doesn’t have a phone, English is not their first language or they cannot attend a hearing
  • Assess the debtor’s finances over the phone: if you have the debtor’s telephone number, you can apply for a registrar to telephone the debtor to ascertain their ability to pay. This can be useful if you don’t have the debtor’s address, you don’t want to attend a hearing or the debtor has not completed a financial statement, or
  • Summon the debtor to a financial assessment hearing: if you have an address for the debtor, you can apply for a hearing to ascertain the debtor’s financial situation. You can serve a summons to the hearing on the debtor, or request a court-appointed bailiff to do so. If service is unable to be completed, you must provide a new address for the debtor. Where service is completed, but the debtor fails to attend the hearing, a warrant for the debtor’s arrest may be issued.

 Enforcement actions

You can make multiple applications to enforce civil debt:

  • If you know who pays the debtor (salary, wages or benefit), you can apply for an attachment order, which tells an employer or Work and Income to transfer money from the debtor’s wages or benefit to you. This arrangement can be set up either at a hearing if the parties agree, or after
  • the judgment order has been made
  • For a debtor who has valuable assets, you can apply to the court for a warrant to seize property. You must provide evidence that the debtor owns the property
  • If someone else owes the debtor money, you can apply to the court for garnishee proceedings to have that money paid to you instead, and/or
  • For a debtor that owns property, you can apply for a charging order to make it difficult for them to sell that property until the debt is paid.

Fees

There are fees associated with civil enforcement. You can, however, add the cost of fees to the amount owed by the debtor to be recovered when the debt is paid. A list of current fees can be found here.

Forms

You must complete an application form for each debtor. A list of civil enforcement forms can be found here.

 

 

 

Related Articles

  • Auckland
  • Bay of Plenty
  • Canterbury
  • Coromandel
  • Gisborne
  • Hawke's Bay
  • Kapiti Coast
  • Manawatu - Wanganui
  • Marlborough
  • Nelson
  • Northland
  • Otago
  • Southland
  • Taranaki
  • Waikato
  • Wairarapa
  • Wellington
  • West Coast

DG Law

David Graham and his secretary started out in a small office in Panmure in 1984.  We now have a large team covering a broad range of the law.

Our vision is to provide a prompt, efficient and effective solution to our clients' legal needs.  Our standard of work is high and clients can be confident they will receive the following when dealing with the DG Law team:

  • Care
  • Courtesy 
  • Prompt Communication 
  • Honesty, and 
  • Trust

Region: Auckland

Phone: 09 574 5316

Koning Webster

Koning Webster Lawyers was established in April 2011 by founding directors John Koning and Spencer Webster.  Their vision was to establish a firm that provides the highest quality legal advice to Maori entities and other parties dealing with Maori land and natural resources.  The firm now advises a wide range of clients within the Bay of Plenty and throughout New Zealand.

Koning Webster Lawyers values its ability to provide our clients with the highest levels of legal advice and customer service.  As a small and flexible firm, Koning Webster Lawyers is able to provide this specialist advice to clients in an efficient and cost-effective manner.

Region: Bay of Plenty

Phone: 07 547 4283

Malley & Co

Our experienced, solutions-focused team will work hard to get you the best possible outcome, whatever your legal needs.

Region: Canterbury

Phone: 03 379 0712

Purnell Jenkison Oliver

There is nothing as inevitable as change. Since opening for business early last century, we at Purnell Jenkison Oliver have seen many changes both in name and in the people who have made up the members of our team. We have been privileged to have served the public throughout all of these times. 

We are confident that we will continue to bring top quality legal services to our clients well into the future.

Region: Coromandel

Phone: 07 868 8680

Woodward Chrisp Lawyers

At Woodward Chrisp we strive to meet the needs of our clients by providing a wide range of high quality legal services within a supportive and collaborative environment.

Woodward Chrisp is the amalgamation of two long established Gisborne legal firms: Woodward Iles & Co and Chrisp and Chrisp. Today’s partners are Ross Revington, Adam Simperingham and Jeff Allen.

Region: Gisborne

Phone: 06 869 0900

NZ LAW Limited

NZ LAW Limited is an association of independent legal practices with member firms located throughout New Zealand. There are currently 57 member firms practising in a wide range of legal disciplines ranging from business law, home buying and selling, immigration law and intellectual property to aviation law and viticulture.

The group was established in 1992 when about five law firms met in Auckland to find a way to benefit their clients by replicating the conviviality and the sharing of ideas and expertise that occurs in larger law firms, but still be able to retain client confidentiality and their own independence.

Region: Hawke's Bay

Phone: 06 835 5299

Breaden McCardle Lawyers

Breaden McCardle Lawyers is the largest full service legal practice in the Kapiti Region.

We are here to help you and pride ourselves on providing practical, solutions based advice to clients in an approachable and straightforward manner.

Region: Kapiti Coast

Phone: 04 296 1105

CS Law

Looking after you, your family, and the small print.

Region: Manawatu - Wanganui

Phone: 06 368 9239

Wain & Naysmith

Based in Blenheim, Wain & Naysmith Lawyers is a full service law firm, and a powerhouse for property, family and business law.

We pride ourselves in providing clear and cost effective legal solutions and practical advice for you, your family and your business.

Region: Marlborough

Phone: 03 520 6103

Knapps Lawyers

As a firm, we promise to look after you and treat you in a manner that we would expect to be treated by a professional services provider; we promise to use every available legal remedy available to us to resolve your issue and to do what you ask us to do in a timely manner.

We will hold in strict confidence all information that we acquire through our work for you and which concerns your business or personal information.  The only exceptions are where you authorise us to disclose such information or where we must do so by law.

Region: Nelson

Phone: 03 544 7888

Law North Limited

We pride ourselves on being a "general store" for most legal issues but also have several in-house experts in specialised areas including trusts, relationship property, business and property law.  No matter what your issue is - whether you are looking for trusted legal advisers to steer you through life, or you have a one-off problem to sort out - we would be pleased to help.

Law North Ltd provides a broad range of legal services across the Far North district from our base in Kerikeri.   We have operated in the area for over 100 years and have a long-standing history of providing legal services to a diverse client base, including businesses and private clients.   Our directors and their families have been part of the Bay of Islands community for several generations and remain committed to the area and its people.  We often call upon strong local knowledge to resolve issues for clients whilst remaining vigilant about client confidentiality.

Region: Northland

Phone: 09 407 7099

Sumpter Moore

Sumpter Moore is based in South Otago and has a proud history of having provided a broad range of legal services to personal clients and businesses since 1873. Generations of families have been able to rely on our advice and assistance, because Sumpter Moore has stood behind that advice for over 100 years.

Sumpter Moore has fully serviced offices in both Balclutha and Milton, our relatively small size means we can work closely with our clients and you know who will be personally responsible for your legal affairs. It allows us to have close control over the quality and timeliness of the advice you receive.

Region: Otago

Phone: 03 418 0066

Cruickshank Pryde

We are proud to provide a full suite of legal services to the regions of Southland and Central Otago. With our offices, located in Invercargill, Gore and Queenstown, equipped with the latest modern technology, we can service wider New Zealand and international clients with ease. Our areas of expertise include commercial, rural, business, employment, family, criminal, property, resource management and estate planning law.

Region: Southland

Phone: 03 214 4069

Welsh McCarthy

Welsh McCarthy practises in Hawera, South Taranaki. Predominant industries in the South Taranaki district are dairy farming, oil and gas. The South Taranaki area also has the largest one-site multi product milk processing facility in the world

We deal with company and commercial transactions, commercial and family law, farm and residential sales and purchases, estate planning and family and charitable trusts. A large part of the firm also deals in the area of family law.

Region: Taranaki

Phone: 06 278 5039

Norris Ward McKinnon

We are the Waikato’s leading provider of specialist legal services with a national and international perspective.

We provide tailored legal advice to meet the diverse needs of large and small corporates, public institutions, small and medium businesses, individuals and families.

We know that choosing a law firm is not an easy task. We work with our clients to listen, reassure, and resolve their problems simply and cost effectively. From our experience, the best way to do this is through developing understanding and long-term relationships with our clients. Our team of lawyers are highly regarded with a depth of experience that gives them the credibility that underpins Norris Ward McKinnon’s solid reputation in the legal market. Put simply, they are real people dealing with the real issues that affect our clients day-to-day.

Region: Waikato

Phone: 07 834 6000

Gawith Burridge

Gawith Burridge traces its history back to 1875 when Charles Gawith first set up his practice. Since then the firm has undergone many changes, including a merger between Gawith & Co and Burridge & Co in 1998 to form our current practice.

Our firm draws on the breadth of expertise available from some of the region’s most senior legal practitioners, as well as the skills of those who have moved here from larger corporate environments.

As a result, we provide clients with a comprehensive range of legal services right here in the Wairarapa. We can provide you with legal assistance whether you are an individual or a company, with everything from setting up a Will to selling your farming business. 

Region: Wairarapa

Phone: 06 370 0000

Greg Kelly Law Ltd

Greg Kelly Law Limited is a boutique Wellington law firm specialising in trust and elder law. Our practice areas are wills, estates and trusts.

We act for private and institutional clients establishing and administering trusts, wills and estates. We also provide quality advice to legal and accounting firms in New Zealand and overseas. In particular, we can assist with legal opinions, obtaining and resealing probate, and estate and trust litigation.

Region: Wellington

Phone: 04 499 5193

Hannan & Seddon

The Law Firm of Hannan & Seddon dates back to September 1867.

The firm's offices were in Werita Street from 1867 until 1982 when the firm moved to Tarapuhi Street and then to its current spacious premises at 61 Guinness Street in 1998.

The name Hannan comes from Mr Michael Hannan whose son John Hannan (Jack) joined the firm in 1908. Jack Hannan remained in partnership until he passed away in 1974 at the age of 90!

The name Seddon comes from Mr T E Y Seddon (son of Premier Richard John Seddon from Kumara) who joined the firm in the 1920's. The other prominent Solicitor at Hannan & Seddon was Cyril McGinley who joined the firm in the late 1920’s and retired as a Consultant in 1997 aged 87.

Currently we have two Partners within our firm. Tony Sullivan who has been with us for 29 years and Colin Smith, 26 years. The firm also has two long serving Legal Executives Elaine Knowles and Beverley Walsh.  

Region: West Coast

Phone: 03 768 4169

All the information published on this website, or in any article herein is true and accurate to the best of the authors' knowledge. Information on this site should not be a substitute for legal advice. No liability is assumed by NZ LAW Limited, or individual NZ LAW member firms for losses suffered by any person or organisation relying directly or indirectly on information published on this site. Views expressed in any article are the views of the authors individually and do not necessarily reflect the view of NZ LAW or their member firms. Information appearing on this site may only be reproduced with prior approval from NZ LAW Limited Head Office, and credit being given to the source. © NZ LAW Limited