A Quick Look At Garnishee Order Costs In Malaysia
Updated: Sep 3
When a creditor in Malaysia hear that a garnishee order can freeze and recover money directly from a debtor's bank account, it's easy to believe it's the perfect solution.
For many, it becomes much less ideal when they find the answer to a key question:
"How much will it cost to obtain a garnishee order?"
The Rule & Co. team has overseen many garnishee proceedings, and in our experience, while specific legal fees and costs always vary from case-to-case, a reasonable estimate is around the RM40,000 - RM50,000 range.
This is because a garnishee order is not something a creditor can obtain immediately after a debt goes unpaid. They must commence civil proceedings, obtain a court judgment against the debtor, and then consider garnishee proceedings only if the debtor continues to ignore that judgment and refuses to pay.
So what should you do from here?
If the amount owed is enough to justify the expense, see our guide to garnishee orders against bank accounts where we explain the process and considerations involved.
If the amount owed does not justify the likely cost, it may be better to explore pre-court debt recovery options first.
Don't underestimate them! In many situations, a strategically drafted letter of demand, negotiations, or a settlement arrangement can achieve a more commercially sensible outcome than taking a debtor to court.
That's it from us - we did say this would be a quick clarification 🙂
Garnish your debtor’s bank accounts with Rule & Co.
With a decade in legal debt recovery, Rule & Co. has supported creditors through countless garnishee proceedings against debtor bank accounts. We guide you through the process from start to finish, helping you understand your options, navigate the court process, and take necessary steps towards recovering what you are owed.
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