The typical methods employed in enforcing money Judgements include: (i) Compliance - Very often a Judgement debtor will pay the money owed to a Judgement creditor and thus satisfy the Judgement. If the Judgement debtor does not pay, the Judgement creditor should contact him/her and ask for payment. Sometimes a simple telephone call or a short letter yields results, sometimes a lien or execution is required.

(ii) Charging Order - This is a charge on a piece of property. A Judgement creditor can place a charge on both the real and personal property of the Judgement debtor. When property subject to a charge is sold, either a portion of the proceeds are used to satisfy the outstanding charge or the property is sold subject to the charge. Execution of a money Judgement is obtained through a legal process of enforcing the Judgement by seizure and subsequent sale of the property owned by a Judgement debtor.

(iii) Attachment of Earnings - An Order of the Court whereby the Court orders the Judgement debtor's employer to set aside a percentage of the debtor's earnings and pay those directly to the Judgement creditor.

(iv) Garnishee Order - If the Judgement creditor is aware of a debt owed to the Judgement debtor (this can be for example a Bank Account which is in credit and is in the name of the Judgement debtor), then the Judgement creditor can obtain an Order of the Court which is known as a Garnishee Order. The Judgement debtor's creditor (in this example the Bank) is then responsible to account to the Garnishor (i.e. the Judgement creditor) to pay the debt (e.g. in this case the contents of the Bank Account) to the Garnishor who is the Judgement creditor.

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Filed under: BANKRUPTCY

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