So you have a Judgment – What’s Next?

Introduction

This article will guide you through the process of recording a VCAT judgment, how to record a VCAT judgment in the relevant court and a particular focus on the ways in which you can enforce a monetary judgment order to assist you in acquiring the relief you're entitled to.

A.  What is a judgment?

A judgment is a formal order issued by the Court or Tribunal that certifies that you are legally owed a debtor confirms that the other side to your dispute (i.e. the Defendant) must complete (or refrain from completing) certain actions.

A judgment itself generally lasts 10 years (or 15 years with leave of the Court) from the date the judgment orders were made.

However, a judgment order does not guarantee you will receive payment or that the Defendant will comply with  anything else they have been ordered to do. If the Defendant does not comply with the judgment, you are then required to complete a separate process, known as ‘enforcing’ a judgment order, to be able to get what is stated in the judgment.

So, how you can enforce a VCAT judgment or a Court judgment in Victoria?

 B.  VCAT Orders

The Victorian Civil and Administrative Tribunal (VCAT) can resolve disputes and make a judgment order that demands payment or prohibits certain actions being taken by a Defendant. However, to be able to actually enforce a VCAT judgement order, you need to go through the Victorian Courts.

How do you enforce a VCAT Order?

1. The first step to enforce your VCAT order is to ‘record’ it in the relevant Court. ‘Recording’ your order is the court’s way of transferring your VCAT matter in its court system.

But what’s the relevant Court?

If you have a monetary judgment order (i.e. one that orders the Defendant to pay you a certain some of money), the correct Court to record your VCAT order will depend on the total value of the monetary order.  

If the total is less than $100,000, you can record your VCAT order in the Magistrates' Court of Victoria. If the total is more than $100,000, you must record your VCAT order in the County Court or Supreme Court of Victoria.        

Alternatively, if your VCAT order requires the Defendant to do or to stop doing something, and they have not done so after VCAT made the order, you can record your matter at the Supreme Court to determine the appropriate mechanism to enforce your order.

2.  Once you have worked out the relevant Court, you then email the relevant VCAT List (as seen on the top left hand corner of your VCAT order) with your case number, the date the order was made, and to request VCAT to record your matter in the relevant Court. The relevant Court will then contact you with a new Court case number.  

C. Enforcement Options  

Now that you have recorded your VCAT order in a Court or you already have a stamped Court order in your possession, what’s next?

This section will focus on how you can enforce monetary orders, also known as a “judgment debt”.

There are several ways to enforce your judgment debt against a Defendant, and the key information you need to have to hand to apply for that process includes:

1. Attachment of Earnings Order

This is a Court process that involves making an application to the Court to seek to deduct a portion of the Defendant’s wages and pay it to you until the judgment debt is paid off in full.  

Required information to proceed: you need to know if the Defendant is earning a wage and the details of their employer.

2. Warrant to Seize Property

This involves making an application to the Court for the Court’s sheriff to attend the Defendant’s place of  residence (or their place of business if they own one) to seize assets belonging to the Defendant. Once those assets are seized, they are then sold at an auction and the proceeds go toward paying off your judgment debt.  

Required information: an address or addresses of where you know the Defendant holds assets.  

3. Attachment of Debts (also known as a Garnishee Order)

This requires an application to the Court for a third party, such as a bank, to seek to obtain any funds coming into the Defendant’s bank account to be directed to you to pay off the judgment debt.

Required information: the Defendant’s bank account details (including the name of their bank),  knowledge as to whether other people owe the Defendant money, when those people will be making this payment to the Defendant and to which of the Defendant’s bank accounts that they will be paying these funds to.    

 4. Instalment Order

You can apply to the Court to seek an order to allow the judgment debt to be paid off by instalments. The Defendant can also apply for an instalment order. It is then up to the Court to determine if the application to pay by instalments is reasonable and appropriate in the circumstances.

5. Bankruptcy

If your judgment debt is over $10,000, you can prepare and serve a Bankruptcy Notice on the Defence.

However, bankruptcy is a serious step and involves strict requirements and timelines and should be considered with legal advice.

6. Summons to Attend for Oral Examination

If you don’t have the required information of the Defendant to be able to proceed with one or any of the above enforcement options, you can apply for a Summons to Attend for Oral Examination application which orders the defendant to the court to explain their financial circumstances under oath.

It is also important to note:

1. Only one enforcement process can be attempted at a time;

2. You have until the expiry of your judgment debt to apply for any of these enforcement options; and

3.  Many of these enforcement options are at the Court’s discretion to approve.  

Visiting the Court’s websites or speaking with a Court registrar can also be helpful in explaining these Court processes further.    

D.  When to seek legal advice

Choosing an enforcement process is often more strategic than it appears, particularly as every Defendant’s financial circumstances are different and not all enforcement options would be appropriate in the recovery of your judgment debt.

How Sharrock Pitman Legal can help

Our Disputes and Litigation Team can assist you with recording a VCAT order, enforcing a non-monetary order, choosing the most appropriate enforcement process for your matter, as well as managing an evasive or uncooperative Defendant.

We are also able to assist with correctly preparing the relevant forms required for each enforcement process. Please don't hesitate to contact us on 1300 205 506 or sp@sharrockpitman.com.au.

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Disclaimer

The information contained in this article is intended to be of a general nature only and should not be relied upon as legal advice. Any legal matters should be discussed specifically with one of our lawyers.

Liability limited by a scheme approved under Professional Standards Legislation

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