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Sale order encourages debtor to pay up…
In a recent case, a body corporate obtained a Tenancy Tribunal order that required a unit- owning company to pay $50,000 for levies. The debtor company refused to pay so an application was made to the High Court for the unit to be sold.
A sale order authorises a Court Bailiff to seize and sell specific assets of a judgment debtor. This can include chattels, land, buildings, or other property.
Once sold, the sale proceeds are distributed in the following order:
- Any priority debts e.g. mortgages.
- The Court’s costs e.g. advertising and organising the sale.
- The judgment debt.
- Interest or costs on the judgment debt.
- And finally, any balance to the judgment debtor.
Once a sale order is issued, debtors who have, or can borrow, the money are usually keen to pay up to avoid having their assets sold from under them (often at a lower value than if sold privately).
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