How long does it take to get a judgment for a debt?

If the debtor does not file a defence, default judgment can often be sought soon after the 28-day period for a defence expires. A defended claim takes longer, depending on the court, the complexity of the dispute and whether the debtor raises a cross-claim. Summary judgment can shorten a defended matter where the defence has no real prospect of success.

What happens if the debtor ignores the judgment?

The creditor can use the court's enforcement processes. These include an examination to require the debtor to disclose assets and income, a writ allowing the Sheriff to seize and sell property, garnishee orders over wages or bank accounts, and charging orders. For individual debtors owing $10,000 or more, a bankruptcy notice may also be available.

Can I sue a debtor based in another State?

Often yes. NSW courts can hear claims against interstate defendants in many cases, and service across State borders is governed by the Service and Execution of Process Act 1992 (Cth). A NSW judgment can also be registered in another State's court and enforced there against the debtor's assets.

Debt Recovery Litigation Lawyers

In this practice area

Court proceedings to recover debts, from filing a statement of claim through default or summary judgment, defended hearings and enforcement of the judgment against the debtor's assets and income.

When debt recovery litigation is needed

Litigation is the proper course where the debtor disputes the debt, where the claim includes damages as well as a fixed sum, or where a creditor needs a judgment before it can use other tools, such as a bankruptcy notice. A judgment also creates a public record and gives the creditor access to the court's enforcement processes.

Many recovery proceedings are not defended. Others are defended only to delay payment. The way the claim is drafted and the evidence prepared at the start has a large effect on how quickly a defended claim can be resolved.

The legal framework

In NSW, proceedings are governed by the Civil Procedure Act 2005 (NSW) and the Uniform Civil Procedure Rules 2005 (NSW). The forum depends on the amount: the Local Court hears claims up to $100,000, the District Court up to $1.25 million, and the Supreme Court has unlimited jurisdiction. Interstate debtors can be sued in NSW in many cases, and judgments can be registered and enforced in other States under the Service and Execution of Process Act 1992 (Cth).

A defendant served with a statement of claim generally has 28 days to file a defence. If no defence is filed, the plaintiff can apply for default judgment under Part 16 of the UCPR. Where a defence is filed but has no real prospect of success, the plaintiff can apply for summary judgment. After judgment, Part 38 of the UCPR provides for examination of the judgment debtor about their assets and income, and Part 39 provides for enforcement, including writs for the levy of property, garnishee orders over wages and bank accounts, and charging orders over shares and other interests.

How these proceedings typically run

A typical matter runs through a statement of claim, service, and then either default judgment or a defence. A defended claim moves to a timetable for evidence, possible mediation and a hearing. Smaller defended claims in the Local Court often resolve at an early pre-trial review or on the papers. Larger claims in the District and Supreme Courts involve disclosure of documents, affidavits or witness statements and, where needed, expert evidence.

Enforcement is where many creditors lose momentum. A judgment is only worth what can be collected. Examination of the debtor, searches of property and company records, and a well-chosen enforcement step, such as a garnishee order over a trading account, usually decide the outcome.

How GopherWood Lawyers acts

We draft claims that are clear enough to support default or summary judgment where the facts allow it. For defended matters, we test the defence early and look for the shortest route to a hearing or settlement. We plan enforcement from the start, so that searches and asset information are in hand by the time judgment is entered. Where a settlement is reached, we document it with consent orders or security so that a default can be acted on quickly.