Exclusive: Locate a Debtor in New Zealand
September 21, 2020 | Other
Debtors & Creditors: The Basics
Despite how often the terms ‘debtor’ and ‘creditor’ are often used in discussion around accounting, they aren’t so widely understood. So to explain, here are the simple definitions.
A debtor is considered an entity that owes money for goods or services. As an entity, they can be a person, sole trader, company, or even country.
The same range of entity structures also applies to creditors. However, rather than owing money, creditors are whom the money is owed to.
Your First Step to Recovering Money
If you’re a creditor with money owed, first and foremost you need to establish that you have a claim. To do this, you need to gather proof of money being owed.
Essential in this evidence is that you can verify that there was an agreement between yourself and the debtor to provide a good or service in return for money.
Right here is a prime example of why record-keeping is important. If you’re not doing it already, make sure to record all future transaction agreements in case you should ever need them to chase a debtor for money.
Send a Demand Letter
If you’ve already made informal attempts to contact the debtor and remind them of owed money, it’s time to send a demand letter.
In New Zealand, you can send a demand letter via email. However, if possible, it’s good practice to send a demand letter to the debtor’s address.
In the demand letter you should include details of your agreement, state what it is owed, and set a deadline date by which you wish to receive the money. Should the money not be delivered by the stated date, it’s time to take action.
Taking Action
When taking action in New Zealand, any legal documents will need to be served to the debtor. For this, you need their address/location.
Unsure of where your debtor is located? Try looking through NZ’s public records, the White Pages, or the Companies Office Database. Should these methods fail, you can also request their address from a government agency that you suspect might hold the debtor’s address.
As you can see, finding a debtor’s address is not always a quick task... In fact, spending time looking for their address just to begin the process of recovering money can often cost you more in time. This is why people often bring in tracing experts, like private investigators, to track down debtors.
Options for Action:
There are a few avenues you can take once you’ve located a debtor. Which is right for you will all depend on your situation. Take a look.
Debt Collection Agency
If you don’t want to make a big ordeal, a debt collection agency might be right for you. These guys can help you recover your money and save your time by taking matters into their own hands. However, keep in mind that big commercial agencies can be expensive.
Private Investigator
If you’re wanting assistance that is quick, offers personal updates, and doesn’t charge what a large agency will, look no further than a private investigator. These professionals are experts at tracing investigations and legal document serving; everything you need to track down a debtor for money.
Disputes Tribunal
If you’re happy to take legal action, the disputes tribunal might be right for you. This action is best suited for smaller claims of up to $30,000.
District Court
If you’re owed a large sum, you will need to take your claim to the district court. Here they handle claims up to $350,000 - anything beyond must be taken to the high court.
Options for Enforcing Judgement
If you’ve taken legal action and haven’t been able to come to an agreement, you will always have options for enforcing judgement. Here’s what you can consider.
Attachment Order
This order works well for debtors that are still earning money. If they are, an attachment order will order them to pay a set percentage of their income to you until the money owed has been paid.
Charging Order
If it was an asset that you provided in exchange for money, a charging order allows you to stop the debtor from selling/disposing of the asset (e.g. land/property) until the owed money is paid.
Garnishee order
Should your debtor be unable to make your payment as they’re also owed money, a garnishee order will have the Court order the third party to pay you directly.
Warrant to Seize Property
This option allows a Court appointed bailiff to seize goods or money from the debtor’s premises. The aim is to recover enough value to meet the debtor’s payment requirements. For such purpose, any goods seized can be sold to make the payments.
Sale Order
A step above a warrant to seize, a sale order allows a bailiff to seize and sell the larger assets of land and property. Note: this is only available for claims going through the High Court.
Need Help Tracing a Debtor?
Our team at The Investigators can help. We’ve had over 30 years of experience in tracing investigations and serving legal documents. During these years, much of this expertise has come directly from working with creditors to help recover their owed money.
If you’re a creditor who needs assistance in tracing a debtor, get in touch today to discuss your options and find the right solution for you.
