The Distress Warrant
Posted by Steve Huggard on May 12, 2008 · Leave a Comment
A creditor will often achieve a District Court judgment against its debtor but the amount of that judgment may not make it economical for the creditor to proceed on to Bankruptcy or even Liquidation.
For those smaller judgment debts up to about $3,000.00 a creditor is recommended to look to issuing a Distress Warrant against the debtor.
This enables a court baliff to visit the debtor at their home or business and seize goods to that value
When the seizure occurs at a business the business will obviously have tools of trade. Not all if any of those tools on the premises would be subject to a security under the Personal Properties Security Act. Having a Bailiff seize tools of trade can be extremely effective in having the debt owed discharged.
As long as the debtor is left with the minimum of $500.00 worth of tools of trade, all other tools can be seized.
Seized goods are stored and then sold by public auction, the extra costs of storage and the auction itself being covered by the amount of goods seized.
Should the debtor be reluctant to allow the goods to be seized, they have the option to pay the debt!
