Order for Examination
What is an Order for Examination?
Applying for an Order for Examination
If you cannot attend the examination hearing
If the debtor does not attend the hearing
Attachment to wages or benefit
What is an order for examination?
You can apply for the Court to instruct the debtor to appear at a hearing with a Court Registrar, where their financial situation is assessed. This is called an examination hearing.
The examination hearing will assess whether or not they are capable of paying the civil debt. If they are found capable of paying, but have failed to do so, the Court will generally take one of the following actions:
- Order new payment terms and conditions (e.g. weekly instalments)
- Direct that a Court enforcement action begin, for example:
- deductions are made from the person’s benefit, wages or salary (Attachment Order)
- assets are seized and sold to meet the debt (Distress Warrant)
When an Examination hearing is set, you will be told of the date and time and the person will be served with the order requiring them to attend the examination hearing. As you have requested the hearing it is important that you attend as well or have a Solicitor attend to represent you.
At the hearing you will have the opportunity to ask the debtor questions, so come along prepared with any information you have about their ability to pay. You should also bring a bank deposit slip with you. Often the debtor is ordered to start making payments to you and they need your bank account details to be able to set this up.
If the Court assesses they are unable to pay, no order will be made. When you believe the person’s circumstances have changed or if you find out new information, you can re-apply to the Court for another Order for Examination hearing.
Applying for an Order for Examination
You need to file an Application for Order for Examination - Form OE 01 (pdf 127Kb) and pay the applicable fee at the Court where the original hearing took place. Forms are also available at the Court. You will also need a copy of the Court or Tribunal decision on hand so you can quote the correct file references. Court staff should be able to tell you how long it will take for your application to be processed and how soon the hearing can be scheduled.
After your application is made the court will attempt to serve the order for examination on the debtor using the address you supply on the application form – so it is important you provide current contact details for the person. The examination hearing can only go ahead if the person has been personally served with an order to attend that hearing. There is a Service Information Sheet (pdf 127Kb) available to help you gather the right information for the bailiff.
If the Bailiff cannot locate the person at the address you have provided, the hearing will not go ahead and you will be advised of this by the court. To continue, you will need to supply an alternative address. There are several ways you can locate an alternative address for a debtor.
If you cannot attend the examination hearing
If you can’t attend the examination hearing you must let the Collections Unit at the District Court know as soon as possible. They will advise you whether the hearing can be rescheduled. If you simply fail to show up, the enforcement action may be struck out. This means that your enforcement application is no longer active. Generally the only other person that may appear on your behalf is a solicitor.
If the debtor does not attend the hearing
If the other person (debtor) does not attend the hearing you may apply for a Warrant of Arrest to be issued. This means they may be arrested and brought in for an Examination hearing or given bail on condition that they appear at a set time and date for the Examination.
To apply for a Warrant for Arrest you need to file an Application for warrant to Arrest for Attendance at Examination Hearing (pdf 119Kb) and pay the applicable fee at the Court where the original hearing took place. Forms are also available at the Court.
When applying for a Warrant for Arrest you need to provide current contact details for the person. The Bailiff uses this information to execute the warrant. If the Bailiff cannot locate the debtor at the address you have provided on your application you will need to supply an alternative address. There are several ways you can locate an alternative address for a debtor.
Attachment to Wages or Benefit
At an examination hearing the court may order that payments be deducted directly from the person’s income and paid to you. This is known as an attachment order. The Court can assist you to set up the arrangement with the employer or the Ministry of Social Development (for benefit deductions) directly after the hearing.
Once the attachment order is set up it is your responsibility to monitor the payments. The Court does not check if payments are made. If you are having problems receiving your payments, you should contact the employer or the Ministry of Social Development directly.
A common reason why payments are not made is that the debtor leaves that place of employment or in the case of a beneficiary, they move off the benefit.
