How to Enforce a Court Judgment When Someone Refuses to Pay
Winning a court case is often a relief, particularly after months or even years of stress, legal costs and uncertainty. However, many people are surprised to learn that securing a favourable judgment does not automatically guarantee payment. If the losing party — known as the judgment debtor — refuses to pay what the court has ordered, you may need to take additional steps to enforce the judgment. Understanding your options is a crucial part of Litigation and Dispute Resolution in Australia, and this guide explains the key methods available to help you recover what you are owed.
Why Enforcement May Be Necessary
A court judgment formally establishes that a person or business must pay a specified amount or comply with an order. Despite this, some judgment debtors simply ignore the decision, dispute the debt informally, or claim financial hardship. The court will not automatically enforce the judgment for you; it is up to the successful party — the judgment creditor — to initiate recovery action.
Most Australian jurisdictions allow you to apply for an examination or enforcement hearing. This is a court-supervised process where the debtor must provide detailed information about their financial position, including:
employment income
bank accounts
assets and liabilities
business interests
living expenses
The purpose is to determine the debtor’s capacity to pay and identify the most suitable enforcement option. If the debtor fails to attend, the court may issue a warrant for their arrest. This step often encourages debtors to pay or negotiate to avoid further legal consequences.
Garnishee Orders
A garnishee order is a common and effective method of enforcing a monetary judgment. It requires a third party — such as the debtor’s employer or bank — to pay money directly to you.
Types of garnishee orders include:
Wages garnishee (deductions made from salary or wages)
Bank account garnishee (funds transferred from bank accounts)
Garnishee on debts owed to the debtor (for example, unpaid invoices)
Garnishee orders must be proportionate and leave the debtor with sufficient income to cover basic living expenses, but they can provide steady and reliable repayment over time.
Writ for the Levy of Property
If the debtor owns valuable assets, you may apply for a writ for the levy of property, enabling the sheriff to seize and sell the debtor’s property to settle the judgment. This can include:
vehicles
equipment
business assets
personal property
land or real estate (in some cases)
Real property is usually a last resort as the process is time-consuming and subject to strict requirements. However, for significant debts, this option may be appropriate and effective.
Charging Orders
A charging order places a security interest — similar to a mortgage — over the debtor’s assets, such as real property or shares. While this does not immediately result in payment, it may prevent the debtor from selling the asset without paying the judgment amount. Charging orders are often strategic tools used in complex Litigation and Dispute Resolution matters, especially where the debtor holds valuable long-term assets but limited cash flow.
Bankruptcy or Winding-Up Proceedings
If the debt exceeds the relevant statutory threshold (such as $10,000 for bankruptcy), you may initiate insolvency proceedings:
For individuals:
Bankruptcy notice followed by a creditor’s petition
Trustee appointed to manage the debtor’s estate
For companies:
Statutory demand (21-day deadline to pay)
Application to wind up the company in insolvency
These steps are serious and can have significant financial and legal consequences for the debtor, often prompting immediate payment to avoid insolvency.
Interest and Costs
Judgment debts in Australia typically accrue interest from the date of judgment until paid. You may also be entitled to recover reasonable legal costs associated with enforcement. Each state and territory has its own rules, so it is important to confirm the applicable interest rates and cost recovery options.
The Importance of Good Legal Advice
While some enforcement options are straightforward, others involve significant risk, cost or procedural complexity. A solicitor with experience in Litigation and Dispute Resolution can:
explain the most cost-effective enforcement strategy
draft the required documents
negotiate with the debtor on your behalf
ensure compliance with court rules
maximise your chances of successful recovery
Choosing the right enforcement tool can save you both time and money.
Winning a judgment is only the first step — ensuring the debtor complies is equally important. Fortunately, Australian courts provide a range of tools to help you enforce your rights when someone refuses to pay.
Whether through garnishee orders, property seizure, charging orders or insolvency proceedings, there are practical solutions available to help you recover the debt.
If someone owes you money and refuses to pay a court judgment, our Litigation and Dispute Resolution team can help you choose the most effective enforcement strategy.
