Description of Legal Proceedings

Should our attempts to recover your debt be unsuccessful, legal proceedings may be the only option to pursue the debt.  Below are some descriptions of legal terms associated with debt collection.

Notice of proceedings and summary judgements

These are your initial documents for filing proceedings in both the District and High Courts. To commence standard proceedings (Notice of Proceedings) two documents need to be filed at the district court – Notice of Proceedings and Statement of Claim.

The Notice of Proceedings informs the defendant what the documents are and what they need to protect there position. It states what court the proceedings has been issued in and a memorandum is normally attached which informs the defendant to their legal rights.

The Statement of Claim outlines the events leading up to the issuing of the proceedings such as when the contract was entered into, what the terms of trade were, if payments were made and states the facts as they arose.

Judgements

Distress Warrant:  Issued by the District Court, Authorises the local bailiff to go to the property of the judgement debtor and seize goods and chattels, they can then be sold to satisfy the debt.

The Garnishee Summons and Order:  This is an order of the District Court which commands a person (3^rd party) to pay monies owing to the judgement debtor, to the judgement creditor instead.

Attachment Order:  This is an order issued by the District Court and is made against the wages of the Judgement Debtor.  Employers must deduct payments the day before salary or wages are payable and pay the person specified in the order.

Warrant to Arrest:  The District Court can issue a warrant for the arrest of a judgement debtor if they do not attend the district court to be examined as to their means and assets. 

Statutory Demands:   Can be issued against duly incorporated companies under the companies act.  This is the most common way for creditors to start to put a company into liquidation.  A company can be put into liquidation when it is unable to pay its debts.