If someone owes you money, as a creditor, you can sue the debtor in court, and the court will order them to repay the specified amount of debt. However, many people are unaware that if the debtor fails to comply with the court’s judgment and make the payment, the court is not obligated to enforce the judgment on your behalf. You need to take action yourself to enforce the judgment.
One common situation is when the debtor proposes an instalment payment plan, which requires a court hearing and the issuance of a temporary order for execution. The debtor must prove their ability to make instalment payments, and the amount paid in instalments must be sufficient to cover the interest. Otherwise, the court may reject the application.
Additionally, if the debtor agrees to an instalment repayment agreement but fails to make payments as specified, the court may view it as wilful evasion of responsibility and impose a 40-day imprisonment sentence.
Warrant to Seize Property
If the debtor fails to comply with the court’s judgment and make the payment, the creditor can apply for a “Warrant to Seize Property,” commonly known as a “garnishee order.” The relevant authorities will seize the debtor’s assets and publicly auction them, with the proceeds being used to cover court expenses before being handed over to the creditor.
Third-Party Debtors Legal Procedure
Another method is to pursue the debt through a third-party debtors legal procedure. This procedure means that a third party has a legal responsibility to make payments to the debtor instead of directly paying the creditor. For example, if the debtor is employed by a company, the creditor can request the company to deduct a portion of the debtor’s salary to repay the debt under this procedure.
If you encounter any disputes related to debt, whether you are a creditor or a debtor, please contact us immediately. We will answer your legal questions regarding debt and provide you with professional and cost-effective strategies to safeguard your debt rights.
*Disclaimer: The above content is provided as general legal knowledge and should not be taken as specific advice for your individual situation. The law is complex, and we strongly recommend consulting professional legal advice. Canaan Lawyers shall not be held liable for any loss or damage caused by the information contained or omitted in the above content.