Garnishee Proceedings
If someone owes you money and you have a court judgment, the judgment does not always mean you will be paid straight away. The judgment says the money is owed. If the debtor still does not pay, you may need to take another step to collect the money.
A garnishee application is one way to do this. It can be used when another person, business, bank, or organisation owes money to the debtor or is holding money for the debtor. You can ask the Court to order that third party to pay the money to you instead of paying it to the debtor.
This can include money in a bank account, money on deposit, money held by a government agency, or money held by someone else for the debtor. The debtor can be a person or a company.
Garnishee proceedings can be useful because they focus on money that is already owed to, or held for, the debtor. They may be useful where:
You have a court judgment, but you have not been paid; and
The debtor is ignoring you or avoiding payment; and
You know someone else owes money to the debtor; and
The debtor has money in a bank account or held somewhere else; and
You want a focused way to try to recover the debt, rather than starting a wider insolvency process.
Garnishee proceedings can be effective, but they are not always the best option. They usually work best when you know where the debtor's money is, or who owes money to the debtor. You should get legal advice before deciding whether to use garnishee proceedings, bankruptcy, or another debt recovery option.
Our litigation solicitor, Luis De Mattos, can help if you are:
A creditor with a court judgment who wants to know whether garnishee proceedings could help; and/or
A creditor deciding whether to use garnishee proceedings, bankruptcy, or another option; and/or
A business or individual who needs help recovering a judgment debt.
If garnishee proceedings are not right for you, there may be other options. Whether you are a creditor or a debtor, we can explain your position and your next steps.
Contact Luis (our resident specialist) directly: luis.demattos@turnerhopkins.co.nz to understand your options and protect your interests.