Changes make it easier to recover debt

Courts Minister Chester Borrows says changes which come into effect today will improve the process for people recovering debt owed following a civil court case.

The changes, made under the District Courts Amendment Act 2011, streamline the debt recovery process to make it faster, easier and cheaper for creditors, debtors, their representatives and the courts and tribunals.

“One of this Government’s most important priorities has been to support business so they have the confidence to hire another person, or invest another dollar,” says Mr Borrows.

“A modern, efficient and easy to use civil court system, with good tools to enforce those court judgments, is an important part of that.

“The changes coming into effect today are yet another part of our push to modernise the court system, and will help businesses spend less time chasing debts, and more time creating more and better paid jobs for New Zealanders.”

The changes coming into force today include updates to embrace new technology, such as making forms available online and able to be submitted by email.

“These changes also make more efficient use of court and tribunal time. For example the process of obtaining an Attachment Order, to make deductions from someone’s wage or benefit to settle a debt, has been greatly simplified.

“That process used to require at least two court appearances, and a requirement for the order to be served on the other party in person – with a $250 fee to change, suspend or cancel the order.

“From today it can only take one court hearing, orders can be served electronically, and the fee for changing an order has been waived. It’s much better and simpler for everyone concerned,” says Mr Borrows.

The District Courts Amendment Act is part of a comprehensive package of legislative changes arising out of the Courts and Criminal Matters Bill which was introduced to improve the processes for collecting fines and enforcing civil debt.

Previously introduced initiatives include: allowing driver licences to be suspended for unpaid traffic fines, giving credit agencies the power to check for outstanding fines before deciding whether or not to lend, and allowing fines to be disputed online.

“Those changes have been effective in helping our courts improve the collection of fines,” Mr Borrows says.

“It’s estimated that, between them, they’ve helped us collect more than $50 million in fines in the three years since the Bill was introduced,” says Mr Borrows.

For more information see www.justice.govt.nz/fines/civil-debt.

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