Enforcing a judgment debt in NSW: getting paid after you win.

The gap between winning and being paid.

A judgment is a court's declaration that one party owes another a sum of money. Enforcement is the separate process of turning that declaration into payment. Some debtors pay as soon as judgment is entered. Others do not, and for them the creditor has to choose an enforcement method and apply for it. The right choice depends on whether the debtor has a job, a bank account, or property worth taking.

This is general information, not advice on your matter. Enforcement can be quick and cheap or slow and pointless, depending on the debtor's circumstances, and spending money to enforce against a debtor with nothing is throwing good money after bad. A short assessment of what the debtor has is the sensible first step.

How do you find out what the debtor owns?

If you do not know what the debtor earns or owns, you can start with an examination. An examination notice, or in more serious cases an examination summons, requires the debtor to fill out a form or attend court and answer questions about their income, bank accounts, employer, and property. It is the information-gathering step that tells you which enforcement method is worth using.

An examination is often the smartest first move against a debtor you know little about. There is no point applying for a garnishee against a bank account you cannot identify. The examination gives you the employer's name, the bank, and the assets, so that the next step is aimed rather than guessed.

What is a garnishee order?

A garnishee order redirects money that is owed to the debtor so that it comes to you instead. The two common targets are wages and bank accounts. A garnishee of wages requires the debtor's employer to pay part of each wage to you until the judgment is met, subject to a protected minimum the debtor is allowed to keep. A garnishee of a bank account requires the bank to pay you the balance up to the amount owed.

Garnishee orders are popular because they are effective against a debtor with a steady job or money in the bank. Their weakness is that they need a target. You have to know the employer or the bank, which is why an examination often comes first. A wages garnishee is a continuing order that keeps taking until the debt is paid; a bank garnishee is a one-off snapshot of whatever is in the account on the day.

What is a writ against property?

A writ for the levy of property authorises the sheriff to seize and sell the debtor's goods to satisfy the judgment. For personal property such as vehicles or equipment, the sheriff can take and auction them. For land, a writ can lead to the sale of real estate to pay the debt, though that is a heavier and slower process with its own protections.

A writ is useful where the debtor owns valuable goods or property but has no reachable wages or bank account. It is more cumbersome than a garnishee, and the sheriff's process takes time. Against a debtor whose only asset is a house, it can still be a powerful lever, because few people will let a property be sold from under them rather than pay.

What are the last-resort options?

For larger debts, bankruptcy and winding up sit at the end of the road. If the debtor is an individual who owes more than the bankruptcy threshold, an unpaid judgment can support a bankruptcy notice and then a creditor's petition. If the debtor is a company, an unpaid judgment can support a statutory demand and then an application to wind the company up. These are serious steps with their own federal procedures.

Bankruptcy and winding up are blunt instruments. They rarely produce full payment and they end the debtor's solvency, so they are used either where the debt is large enough to justify them or as pressure to force payment. For most Local Court judgments, a garnishee or a writ is the practical route, and the insolvency options are kept in reserve.

How long do you have to enforce a judgment?

A judgment does not last forever as an easily enforced debt. In NSW a money judgment can generally be enforced for twelve years, but some enforcement steps require the court's leave if more than a set period has passed since judgment. Interest also runs on the judgment until it is paid, at the rate the court sets, which adds up over time and is itself recoverable.

The practical point is not to sit on a judgment. Enforce while the debtor still has the job, the bank account, or the asset you identified. Debtors move money and change jobs, and a judgment enforced promptly is worth far more than one left in a drawer. If the debtor genuinely has nothing now, it can be worth waiting and enforcing later when their circumstances change, but keep track of the time limits.

Primary sources: enforcement of judgments is governed by the Civil Procedure Act 2005 (NSW) and the enforcement provisions of the Uniform Civil Procedure Rules 2005 (NSW), covering examinations, garnishee orders and writs. Bankruptcy is federal, under the Bankruptcy Act 1966 (Cth), and company winding up under the Corporations Act 2001 (Cth). NSW enforcement decisions are searchable on JADE.

Common questions

How do you enforce a court judgment in NSW?

You choose an enforcement method and apply for it. The main options are an examination to find the debtor's income and assets, a garnishee order against wages or a bank account, and a writ for the sheriff to seize and sell property. For large debts, bankruptcy or winding up are available. The right choice depends on what the debtor earns and owns.

What is a garnishee order?

A garnishee order redirects money owed to the debtor so it comes to you instead. A wages garnishee requires the employer to pay part of each wage to you, subject to a protected minimum; a bank garnishee requires the bank to pay you the balance up to the amount owed. It needs a known target, which is why an examination often comes first.

How do you find out what a debtor owns?

Use an examination. An examination notice or summons requires the debtor to disclose their income, employer, bank accounts and property. It is the information step that tells you which enforcement method is worth using, so you aim rather than guess.

How long do you have to enforce a judgment in NSW?

A money judgment can generally be enforced for twelve years, though some enforcement steps require the court's leave once a set period has passed since judgment. Interest runs on the judgment until it is paid and is itself recoverable. The practical advice is to enforce promptly, while the debtor still has the job or asset you identified.

What if the debtor has no money or assets?

Enforcement against a debtor with nothing produces nothing, and spending money to pursue them wastes it. An examination tells you whether that is the position. If the debtor genuinely has no income or assets, it can be worth waiting and enforcing later when their circumstances change, while keeping track of the time limits.

To speak to a litigation lawyer, call Aaron Kernaghan on 0421 717 019.

This article is written by Aaron Kernaghan, Special Counsel at Good Legal Lawyers, as at 30 August 2026. It is general information and reflects the personal opinion of the author only. It is not legal advice, it is not a substitute for advice on your own matter, and it does not purport to be accurate or complete. The law changes and procedure varies from case to case. For advice on a specific matter, contact Aaron Kernaghan on 0421 717 019 or contact the firm.

More commentary by Aaron Kernaghan.

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