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Reforms to debt collection and enforcement options
The District Courts Act 1947 has been amended to assist creditors to obtain attachment orders from debtors. An attachment order is when a court order legally requires a debtor’s employer to make deductions from their salaries on the debtor’s behalf until the debt is paid off. This also extends to Work and Income (WINZ) who in future may be required to make deductions direct from debtor’s benefits. The Residential Tenancies Act 1986 has been amended so that Tenancy Tribunal Adjudicators and Mediators can now record the details of an attachment order at the hearing as part of their tribunal orders. This step will assist landlords and enable an attachment order to be imposed immediately without the need for a separate court hearing to request attachment orders. The only catch for landlords and property managers is that the tenants (debtors) must agree to the attachment order. Although this is not ideal for landlords it is certainly an improvement from the current enforcement process and as long as the tenant agrees, WINZ or the employer can pay the rent or debt directly to the landlord. The CCMB is being phased in over several years and the Department of Building and Housing reports the intention is to implement the new legislative requirements so this new process will come into effect in April 2013. Allen Realty is a 100% specialist Auckland Residential Property Management company with a growing network of local branches in Mt Eden, Auckland CBD, Greenlane and Manukau. Visit www.allenrealty.co.nz for information on our services or email simonallen@allenrealty.co.nz for more information. Or you can contact us today for a FREE Property Management Consultation and find out how we can structure a tailored management service to suit your requirements. You can read other recent blogs including Landlord Tips for Preparing for Summer Holidays, Rental Market Report Xmas 2011, Tenant Damages: Allen Realty successful in $5000 plus claim!, Need a Tenancy Agreement for your Rental Property?, Maintenance and Your Property Manager, Unit Titles Act 2010 Explained, Allen Realty Wins Industry Award for Excellence, Listen To Your Tenants, Rodents in Your Rental Property?, Rent Arrears—What is the Process?, Negotiating Tenancies, The Tenant Selection Process, The Art of the Rent Review, Smoke Alarms in Rental Properties and Low Maintenance Gardens in Rental Properties.
Simon Allen
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The Courts and Criminal Matters Bill (CCMB) was passed by Parliament on 7 July 2011. According to Department of Building and Housing the bill "significantly reforms the court’s collection operation and will strengthen the credibility of fines, reparation and civil enforcement systems, and will deliver a fit-for-purpose collections system with simpler, faster and better services". For a long time now there has been a hole in the system as the amount of overdue debts and fines is on the up, and creditors have been increasingly frustrated with the courts and debt collectors enforcement processes which often go nowhere.
