Enforcing a judgment debt through a garnishee order in NSW
A garnishee order (also called a debt attachment order) is one of the most effective enforcement tools available to a judgment creditor. It attaches debts owed to the judgment debtor by a third party (the garnishee), such as a bank account balance or wages. The order compels the garnishee to pay the attached funds to the judgment creditor. In NSW, garnishee orders are governed by the Civil Procedure Act 2005 and the Uniform Civil Procedure Rules 2005.
This is an 8-step workflow for enforcing a judgment debt through a garnishee order under Part 8 of the Civil Procedure Act 2005 (NSW). A garnishee order directs a third party (such as a bank or employer) to pay money owed to the judgment debtor directly to the judgment creditor.
Before you start
- A judgment of the NSW Local Court, District Court, or Supreme Court that remains unsatisfied
- Knowledge of the judgment debtor's bank account, employer, or other debtor (the garnishee)
- The judgment has not been stayed pending appeal
- An examination order has been conducted (recommended but not strictly required) to identify the garnishee
The workflow
Confirm the judgment is enforceable
Verify that the judgment is final, has not been satisfied, and has not been stayed. Calculate the outstanding amount including post-judgment interest under s 101 of the Civil Procedure Act. Confirm the judgment has not been more than 12 years old (after which leave is needed to enforce).
Identify the garnishee
Determine who holds money owed to the judgment debtor. Common garnishees include banks (attach the debtor's account), employers (attach wages), and trade debtors (attach amounts owed to the debtor's business). An examination order under UCPR 38.1 can help identify these.
Prepare the garnishee order application
Complete the application for a garnishee order. Specify the judgment details, the garnishee's name and address, the debt to be attached, and the amount sought. For wage garnishment, note the statutory limits on the amount that can be deducted from wages.
File the application and obtain the order
File the garnishee order application at the court registry or via the Online Registry. Pay the filing fee. The order is made ex parte (without notice to the judgment debtor) and is issued by the registrar. Obtain sealed copies for service on the garnishee and the judgment debtor.
Serve the garnishee order
Serve the sealed garnishee order on the garnishee (e.g. the bank or employer). The garnishee must comply with the order from the time of service. Also serve a copy on the judgment debtor. The garnishee must pay the attached amount to the judgment creditor or into court.
Monitor compliance by the garnishee
Follow up with the garnishee to confirm compliance. Banks typically process the order within 5-10 business days. Employers must make deductions from each pay cycle. If the garnishee does not comply, they become personally liable for the amount that should have been paid.
Handle any dispute or variation application
The judgment debtor or garnishee may apply to vary or set aside the garnishee order. Common grounds include hardship, the debtor's account being a joint account, or the money being exempt (such as social security payments). Prepare submissions opposing any unwarranted variation.
File a satisfaction of judgment or seek further enforcement
Once the judgment is fully satisfied, file a notice of satisfaction. If the garnishee order only partially satisfies the judgment, consider additional enforcement measures: a further garnishee order against a different garnishee, a writ for levy of property, or a charging order over real property.
What you will have at the end
Payment of the judgment debt (in full or in part) from funds attached by the garnishee order, plus post-judgment interest. If the garnishee order does not fully satisfy the judgment, additional enforcement steps can be taken.
Common issues
- Serving the garnishee order on the wrong branch or entity of a bank
- Not accounting for funds in the account that may be exempt from garnishment (e.g. Centrelink payments)
- Failing to follow up with the garnishee and missing the compliance deadline
- Attempting to garnish wages beyond the statutory maximum deduction
- Not filing a satisfaction of judgment once the debt is fully paid, leading to continued enforcement
Run this workflow on a real matter
Quillio helps you prepare garnishee order applications, calculate post-judgment interest, and draft submissions opposing variation applications. It identifies the most effective enforcement pathway based on the debtor's known assets. See /practice-areas/litigation-lawyers or start a free trial.
This workflow covers NSW garnishee orders. Other states have different enforcement procedures and terminology. Check the applicable legislation and court rules for your jurisdiction.
Try this workflow with Quillio.
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