Keep the result of an unsuccessful enforcement attempt
Review actual findings from an unsuccessful enforcement step before selecting further action.
Corporate Recovery Partners
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No payment is still a result to examine
An enforcement step has produced no money, and you are considering another one. First ask what the completed step established. There is a difference between finding no available funds, being unable to locate the debtor and having a procedural issue that needs attention. The next decision should address the actual result rather than simply repeat the previous instruction.
Imagine a materials supplier that has spent money pursuing a judgment but receives only a brief message saying the attempt failed. Ask the lawyer or service provider for the relevant outcome document and a plain explanation. Record the date, scope and limits of the information. Avoid converting a limited result into a conclusion that the debtor has no assets anywhere.
NSW Courts lists different civil enforcement options, including garnishee orders, examination notices and writs for levy of property. Each has a different function. Ask your lawyer to explain the process used in your jurisdiction and what it could reasonably establish. A failed attempt with one procedure does not automatically answer whether another procedure is lawful or worthwhile.
Ask what new information is needed before further spending could be justified. That may include current debtor information or clarification of an ownership issue. Do not ask staff to search indefinitely without a specific question. In the supplier's example, a verified change in the debtor's circumstances may matter more than collecting another set of old rumours.
Keep payments received, approved expenses and the current judgment position clear, with advice about amounts that may be recoverable. Distinguish money spent internally from sums legally owing by the debtor. A growing spreadsheet of recovery costs should not automatically be added to the amount demanded without checking the basis for doing so.
Decide with advice whether to proceed, obtain further information or reassess the commercial approach. Record why and what would trigger another review. Missing deadlines can affect options, so have those checked. The useful lesson from an unsuccessful step is a better-informed decision, not an assumption that either unlimited pursuit or immediate abandonment is the only answer.