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Courts are making changes to civil debt enforcement

Court changes are occurring from 14 April 2014. 

They are being called the most comprehensive reform to civil debt enforcement in almost 25 years. The changes have been made to make the enforcing of debts quicker, simpler and cheaper. 

Some of the key changes are as follows:

  • Currently, an attachment order can only be obtained following an order for examination. This requires a bailiff to successfully serve the summons, and both parties to attend the hearing. Following the changes, either party will be able to apply for an attachment order without a financial assessment or hearing taking place.
  • Attachment orders will also be able to be agreed by both parties at a District Court, Tenancy Tribunal (including tenancy mediation) or Disputes Tribunal hearing.
  • More options will be available for filing an application to assess a debtor's financial means. For example, the court will be able to complete an assessment of the debtor's financial means based on a financial statement filed by either party.
  • Creditors will be able to apply for the court to assess the debtor's financial means which will be able to be completed by phone without the creditor being present or the need for a formal hearing.

CollectIT has been keeping up with these changes as the process has been developed. CollectIT staff will be attending a roadshow later this month to obtain detailed information about the changes.

For further information about how these changes could assist your business, contact CollectIT on 07 834 9111 or email our office on info@collectit.co.nz.