You have a monetary order - what are your next steps
Securing a court order in your favour is a significant milestone in resolving a legal dispute. However, obtaining a judgment is not the end of the process—it's often just the beginning of the next phase: enforcement. Whether you've been awarded money through QCAT or a Queensland court, knowing what to do next is crucial to ensuring you can actually recover the amount owed to you.
This article outlines the steps to take once you have a monetary order and explores the legal options available in Queensland to enforce it.
Understanding Enforceability
Before starting any legal proceedings, it’s essential to consider whether your claim is actually enforceable. Even the strongest case can result in a judgment that is ultimately unrecoverable if the defendant is bankrupt, insolvent, or a shelf company with no assets.
In Queensland, you have 12 years to enforce a judgment under the Limitation of Actions Act 1974. So even if enforcement is not viable immediately, there may be opportunities in the future to recover the debt.
Step 1: Send a Letter Demanding Payment
The first post-judgment step is to formally notify the losing party of the order. This letter should attach a copy of the court order and set out a deadline for payment.
If the party complies and pays the amount owing, the matter is finalised. However, if they ignore the letter or fail to make payment, you may need to proceed with enforcement.
Step 2: Statement of Financial Position
Before applying to enforce a monetary order through the court, you must issue a Statement of Financial Position (Form 71) to the debtor. This form requires them to disclose their income, assets, debts, and liabilities. They have 14 days to respond.
If the debtor fails to respond or the information provided is incomplete, you can apply to the court for an enforcement hearing.
Step 3: Apply for an Enforcement Hearing
An enforcement hearing allows you to question the debtor under oath about their financial circumstances and determine how best to recover the debt. The information gathered can help identify the most effective enforcement method.
Step 4: Enforcement Options Under the UCPR
Once you have clarity on the debtor’s financial situation, there are several enforcement methods available under the Uniform Civil Procedure Rules 1999 (Qld):
Warrant to seize and sell property
Redirection of debts (from a third party to the judgment creditor)
Redirection of earnings
Redirection from financial institutions
Order to pay by instalments
Appointment of a receiver (particularly for companies)
Each option requires a separate court application and may involve additional costs.
Additional Options for Companies and Individuals
If the debtor is a company, you may be able to issue a statutory demand and apply for winding up under the Corporations Act 2001 (Cth). If successful, a liquidator is appointed and you become a creditor of the company.
For individuals, if the judgment is over $5,000, you can serve a bankruptcy notice and apply for a sequestration order to make them bankrupt.
It’s important to remember that enforcing a judgment is not automatic—each enforcement step requires its own process, filing fees, and legal consideration.
Practical Considerations and Costs
While you may have been awarded costs in your favour, enforcement action incurs its own costs, and further applications may be needed to recover those additional amounts. It’s crucial to weigh up the costs and benefits of continuing enforcement.
In some cases, enforcement may not be worthwhile if the debtor has no assets or income. However, the 12-year limitation period gives creditors the option to delay enforcement until circumstances change.
Final Thoughts on Recoverability
The ability to enforce an order depends on the financial position of the debtor. Even with a valid monetary order, recovery may not always be possible. In some situations, it may be more practical to delay enforcement, attempt negotiation, or accept that the debt may be unrecoverable.
Securing legal advice at the beginning of any dispute is vital. A lawyer can help assess the viability of enforcement, recommend safeguards such as personal guarantees, and guide you through the enforcement process if needed.
Need Help With Enforcement?
At Vicca Law, we assist clients across Queensland with the entire dispute resolution process—from pre-court strategy through to enforcing a court judgment. If you have a monetary order and aren’t sure what your next steps are, we’re here to help.
Book a free consultation today at www.viccalaw.com.au or email lidia@viccalaw.com.au.