Garnishee Orders in NSW: Enforcing a Judgment Efficiently

You've obtained a court judgment for an unpaid debt — but the debtor still won't pay. A garnishee order lets you bypass the debtor entirely and collect directly from a third party who holds money on the debtor's behalf — typically their bank or employer. It's one of the most effective judgment enforcement tools available in NSW, and this guide explains the full process from application to payment.

What is a garnishee order?

A garnishee order (also called a "garnishment" or "debt attachment") is a court order that directs a third party — known as the "garnishee" — to pay money they owe to the judgment debtor directly to you, the judgment creditor, instead. The garnishee is typically the debtor's bank (which holds the debtor's funds on deposit) or the debtor's employer (which owes the debtor wages).

Garnishee orders are governed by Part 8 of the Civil Procedure Act 2005 (NSW) and the Uniform Civil Procedure Rules 2005. They can be used to enforce any money judgment obtained in a NSW court.

How to apply for a garnishee order

The process involves five key steps:

Step 1: Identify the garnishee. Before you apply, you need to know who holds money on the debtor's behalf. If you know the debtor's bank, that's the most common target. If you know the debtor's employer, wage garnishment is an option. You can obtain this information through an examination notice (a court process that requires the debtor to attend court and disclose their financial affairs) or through your own enquiries.

Step 2: File the application. File a notice of motion and supporting affidavit in the court that entered the judgment. The affidavit must set out the details of the judgment (amount, date, court), the amount still owing, the identity of the garnishee, and the basis for your belief that the garnishee holds money belonging to the debtor.

Step 3: Obtain the court order. In most cases, garnishee orders are made without a hearing — the court reviews your application on the papers. The order will specify the amount to be garnished and whether it's a one-off payment (for bank accounts) or ongoing deductions (for wages).

Step 4: Serve the sealed order on the garnishee. Once the court stamps (seals) your order, serve a copy on the garnishee (not the debtor). For banks, contact them first to obtain their correct address for service of legal documents — it's different from the branch address.

Step 5: Payment within 14 days. Under section 118 of the Civil Procedure Act, the garnishee must generally pay within 14 days of service. For wages, deductions continue each pay period until the debt is paid.

Protected amounts and limitations

For bank account garnishees

The bank must leave the debtor with at least the minimum balance plus $20 (currently $632.60). If the account holds less than this threshold, the bank doesn't have to comply with the order. Banks may also deduct up to $13 for administration. Centrelink payments in the account may receive additional protection.

For wage garnishees

When the garnishee is the debtor's employer, the court will typically set a maximum percentage that can be deducted from each pay period. This ensures the debtor retains enough income to meet basic living expenses. The court considers the debtor's income, essential living costs, and any dependants when setting the deduction amount.

What if funds are insufficient?

If one garnishee order doesn't recover the full debt, you can apply for additional orders against other accounts, employers, or third parties. You can continue issuing orders until the judgment debt is satisfied — enforcement remains available for 12 years from the date of judgment in NSW.

What if the garnishee doesn't pay?

Garnishees have a legal obligation to comply. If they fail to do so, the court may enter judgment against the garnishee directly for the amount of the debt (or the amount they held). This makes garnishee orders a powerful tool — banks and employers rarely risk non-compliance.

If the garnishee believes no debt is owed or no funds are held, they can serve a statement to that effect on you, setting out their reasons.

When to use a garnishee order

Garnishee orders work best when:

• You know where the debtor's money is. If you know their bank, employer, or a third party who owes them money, a garnishee order lets you intercept the funds directly.
• The debtor is avoiding payment despite having means. A garnishee order bypasses the debtor entirely — they can't stall, ignore, or negotiate their way out of it.
• The debtor has regular income. Wage garnishment provides a steady stream of payments until the debt is cleared.
• Other enforcement methods have failed. If the debtor has ignored examination notices or doesn't have physical assets to seize, garnishee orders target cash and income directly.

Consider alternatives like a writ for the levy of property if the debtor has physical assets but limited cash, or a statutory demand if the debtor is a company and you want to leverage the threat of winding up.

Garnishee orders vs other enforcement options

Enforcement method	Best for	Limitation
Garnishee order (bank)	Debtors with known bank accounts	Protected balance limits; account may be empty
Garnishee order (wages)	Employed debtors with regular income	Court limits deduction percentage; debtor may leave employment
Writ for levy of property	Debtors with physical assets (vehicles, equipment, stock)	Exempt property rules apply; assets may be encumbered
Examination notice	Discovering the debtor's financial position	Doesn't directly recover funds; debtor may not attend
Winding-up application (companies)	Company debtors where insolvency is suspected	Requires statutory demand process first; may result in nil recovery if company is insolvent

Key takeaways

• A garnishee order lets you collect directly from the debtor's bank or employer — bypassing the debtor entirely
• You need a court judgment before you can apply for a garnishee order
• The process involves filing an application, obtaining the order, and serving it on the garnishee
• Banks must leave a protected minimum balance (currently $632.60 plus $20); wage deductions are limited by the court
• If one garnishee order doesn't cover the full debt, you can issue additional orders against other third parties
• Enforcement is available for 12 years from the date of judgment in NSW
• Garnishees who fail to comply risk having judgment entered against them directly

Need help enforcing your judgment?

Call Hilton Bradley on 1300 240 319 for a free consultation. We handle the full enforcement process — from identifying the debtor's assets to applying for garnishee orders and following through until the debt is recovered.

Disclaimer: This article provides general information about garnishee orders under NSW law as at February 2026. It is not a substitute for legal advice specific to your situation. For advice tailored to your circumstances, contact Hilton Bradley on 1300 240 319.