As an alternative, a distress warrant may be issued, resulting in the judgment debtor's assets being seized and sold to secure payment. The threat of bankruptcy and its proceedings is a powerful legal tactic - very few want the stigma and the legal constraints this brings. A debtor failing to comply with court orders can be sent back to court to face contempt proceedings, which may lead to a sentence of periodic detention. Legal fees incurred during a debt's recovery will be added to the original amount outstanding, subject to the court's discretion. Our ability to recover these is enhanced if your terms of trade indicate that legal action forms part of your debt recovery process.
All legal proceedings require prior authorisation.
These instructions will often be held on file. This Act commenced on 1 July 1998, and has replaced existing rules regarding the repossession of goods under credit agreements, including chattel and motor vehicle securities. Entry onto a debtor's premises must be reasonable. Residential premises may only be entered between 6am and 9pm, Monday to Saturday and not at all on Sundays and holidays, unless there is written consent by the debtor. The written consent must be given after the default and before the arrival of the repossession agent.