About enforcement
If there is a judgment against you and you do nothing, the plaintiff may take action to try and make you pay the money or return their goods. This is called enforcement.
The other party has up to 12 years from the date of the judgment to enforce it. They can use more than one type of enforcement action at a time.
There are steps you can take to respond to enforcement action.
Setting aside a default judgment
If there is a default judgment against you because you did not respond to the statement of claim, you may be able to apply to set aside the judgment. For more information, see Step by step guide - Setting aside a default judgment.
Stay of enforcement
A stay of enforcement is a court order that stops the other party from enforcing the judgment for a period of time. If you want to apply for a stay of enforcement, follow the steps in the guide on this page.
If the original judgment was made in another court or tribunal in Australia, you usually need to apply to set aside the judgment or order in that court or tribunal before you can apply for a stay of enforcement. You should get legal advice if you are not sure.
For more information, see Step by step guide - Stay of enforcement.
Responding to an examination notice or order
The other party can ask you to provide information about your employment and financial circumstances so that they can work out the best way to get the judgment debt from you. They can get this information by sending you an examination notice, or by applying to the court for an examination order.
For more information, see Responding to an examination notice or order.
Responding to a writ for the levy of property
A writ for the levy of property is a court order that directs the sheriff to take and sell some of your personal property. The money raised from the sale pays the judgment debt plus the costs paid by the other party to have the writ issued and carried out.
The other party can ask the court to issue a writ for the levy of property. After the court issues a writ for the levy of property, the court will send a copy of the writ to the nearest sheriff's office. Soon after a sheriff will come to your house.
For some people, the first time they find out there is a court claim against them is when the sheriff comes to their home. If you have never received any court papers before, or you don't know why the sheriff has come to enforce a judgment debt, you should call the courts call centre on 1300 679 272 to get a copy of the statement of claim.
For more information, see Responding to a writ for the levy of property.
Responding to a writ for the delivery of goods
If there is a judgment that you return certain goods to the plaintiff, you must do so immediately or within the time stated in the judgment. If you do not do this, the plaintiff can apply for a writ for the delivery of goods. This is a court order that directs the sheriff to collect the goods from you (or where they are kept) and return them to the plaintiff.
After the court issues the writ, it is sent to the sheriff's office. The sheriff may either come to your property to seize (take) the goods, or contact you first to provide you with the opportunity to get legal advice.
For some people, the first time they find out there is a court claim against them is when the sheriff comes to their home. If you have never received any court papers, or you don't know why the sheriff has come to take goods, you should call the courts call centre on 1300 679 272 and ask for a copy of the statement of claim.
The writ may also include an order that the sheriff seize other goods that belong to you in order to pay for legal costs, for the replacement value of goods, or damages. This is called a 'writ for the levy of property'.
For more information, see Responding to a writ for the delivery of goods.
Responding to garnishee orders
If you don’t pay the judgment debt, the other party can ask for a garnishee order directing a third party to pay the money to them.
The other party can ask the court to issue your employer with a garnishee order for wages or salary. This order forces your employer to take money from your wages and send it to the other party.
The other party can also get a garnishee order for debts. This kind of garnishee order forces your bank or credit union to take money from your account and pay it to the other party. It can also be used to order anyone else who owes you money, or holds money on your behalf, to pay that money to the other party.
For more information, see Responding to garnishee orders.
Bankruptcy
If you owe more than $10,000, a judgment creditor may apply to have you declared bankrupt. If you receive a bankruptcy notice you have 21 days to respond. You should get legal advice.
It is also possible to become bankrupt voluntarily. There are important consequences of becoming bankrupt. Before taking this option, you should speak to a financial counsellor. To find a free financial counsellor, go to the Financial Counsellors' Association of NSW (FCAN) website.
You should get legal advice:
- before deciding to go bankrupt
- if you receive documents called a 'bankruptcy notice' or 'creditor's petition'
- if you receive a 'statutory demand'.
For more information, see Bankruptcy factsheet in the Financial Rights Legal Centre website.
Winding up
If the judgment debt was made against your company, the other party may be able to file an application for a winding up order. If you receive a 'Statutory Demand' you should immediately get legal advice.
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