A garnishee notice is a means to recover debts. This may be issued to any person, a third party or organisations like financial institutions particularly:
- Banks
- Credit unions and building societies
- Money market corporations (broker-dealers)
- Finance companies
- Securitisers
These institutions are those that:
- have money that is due, or will become due, to the debtor
- holds or may subsequently hold money on behalf of the debtor
- holds or may subsequently hold money on account of some other person for payment to the debtor, or
- has authority from some other person to pay the debtor
Garnishee Notice: The Basics
As mentioned earlier, this notice is a tool for creditors who want to collect unpaid debts. It instructs a third party (the “garnishee”), who holds money belonging to the debtor (e.g., debtor’s employer, bank), to intercept and redirect a portion of those funds directly to the creditor to settle the debt.
This allows creditors to bypass the debtor and access funds directly, increasing the likelihood of debt recovery. In essence, this notice acts as a powerful legal mechanism to help creditors efficiently enforce court orders and judgments related to unpaid debts.
Debts Covered by Garnishee Notices
These notices in Australia can be issued for many types of debts, but not all debts qualify. Here’s a breakdown of the main categories:
- Court Judgments – If a court has ordered the debtor to pay a debt and they haven’t complied, the judgment creditor can apply for this notice to seize the debtor’s wages or the debtor’s bank account funds to satisfy the judgment.
- Unpaid Taxes – The Australian Taxation Office (ATO) can issue notices for unpaid taxes, including income tax, goods and services tax (GST), and Medicare levies.
- Child Support – If you’re behind on child support payments, the Child Support Agency can use this notice to collect the outstanding amount from your earnings.
- Fines and Infringement Notices – Certain types of fines, like unpaid parking tickets or court fines, can be collected through these notices.
- Debts under Specific Legislation – Specific legislation governs debts like outstanding student loans, electricity bills, and water bills, which may allow for notices in the debtor’s financial circumstances.
Garnishee Order for Debts: Step-by-Step Guide
If you don’t know where to start, here’s a simple step-by-step guide that might help:
- Complete the forms.
- You are required to fill up two forms: Form 69 (Notice of motion – garnishee order) and Form 70 (Garnishee order for debts). However, you don’t have to complete Form 70 if you are filing your application on the NSW Online Registry.
- Get a copy of these from the Local Court or the Uniform Civil Procedure Rules website.
- For Form 69, you can file this one using the NSW Online Registry.
- Fill out the forms on your computer or print them. Use only black or blue pen.
- Have the following information ready for your Form 69:
- Your case number. You will find this on your stamped copy of the statement of claim.
- Date of the judgment.
- Name of the other party.
- Name of the proposed garnishee (the bank or third party who owes the other party money).
- How you know the garnishee is holding money owed to the judgment debtor.
- Total amount of the judgment.
- Garnishee’s address.
- Enforcement costs you have paid since the date of judgment.
- If you are claiming interest, the amount of interest on the judgment debt since the day after the judgment was made by the court to the date you sign the notice of motion.
- Service fee for the garnishee order (only if you intend to pay a process server to serve the garnishee order).
- Other party’s bank account details, if relevant.
- Details of earlier instalment order, if any.
Further Steps
- After completing Form 69, you need to swear or affirm the affidavit section in front of an approved witness, a lawyer or Justice of the Peace (JP). Remember that the affidavit in support must be signed and witnessed on each page no more than 14 days before the date you file the notice of motion.
- Have the following information ready for your Form 70:
- Case number.
- Date of the judgment.
- Name and address of the other party.
- Name and address of the garnishee (the bank or third party who owes the other party money).
- Total amount of the judgment.
- The debtor’s bank account details and contact details including address, telephone, fax, and email.
- File the forms on the NSW Online Registry or the Local Court. You should file an original and two extra copies of the forms. There is no filing fee.
- Serve the order. Send a sealed (stamped) copy of the garnishee order to the garnishee (for example, the other party’s bank). You do not have to give a copy to the judgment debtor. If you are serving this order on a bank, you should contact the bank to find out their address for service of legal documents. This address is different to the branch address.
- Outcome. Any funds held by the bank or a person acting as a real estate agent on behalf of the opposite party that exceeds the minimum sum must be paid to you.
The minimum balance, which is $570.00 each week as of October 1, 2023, must be left to the opposite party. Visit the Local Court website to view the garnishee amounts and the current weekly compensation amount.
However, the bank is exempt from the order if there is less than the minimum balance + $20 in the other party’s account. Moreover, you may request another order if the funds in the other party’s account are insufficient to pay the entire judgment obligation.
Seek Legal Advice from JB Solicitors
These transactions can be overwhelming to understand because of some technical terms. Expert lawyers can explain these terms and help you understand the legal issue that you are involved in.
Do you have more questions about garnishee notices and orders? What about contacting your bank or financial institution because of legal matters? Don’t hesitate to check with an expert from JB Solicitors to guide you throughout the legal process. Contact us today and schedule a consultation about garnishee orders.
