A Quick Look At Finding Debtor Bank Accounts To Garnish
As effective as a garnishee order against a debtor's bank account can be, you first need an account to garnish, and in our decade of debt recovery, we've never known a debtor to willingly share that information!
Fortunately, so long as the debtor is an active business or individual, and especially if you have transacted with them, all you likely need is a little detective work!
Here's a quick guide to locating your debtor's bank accounts for garnishing.
Where to look for information on a debtor's banks
The information is often hiding in plain sight - in our experience, some of the most useful sources include:
previous payment records such as bank transfers or transaction receipts
invoices, quotations, and contracts that contain the debtor's banking details
dishonoured cheques which identify the debtor's bank
email correspondence discussing payment arrangements or account details
SSM MyDATA documents, annual reports, and financial statements that occasionally identify the company's bankers
agreements and other documents exchanged during negotiations
These aren't just checklists we generated with AI, by the way - they have been instrumental in allowing us to enforce court judgments.
As the case astudy above shows, the good news is we generally never need the specific account number to secure the initial and crucial garnishee order nisi.
We generally only need the name of the bank
A creditor generally does not need the debtor's specific bank account number or branch location. All we need is to name the specific bank that we believe is holding funds in the debtor's account.
However, we do generally need to provide the court with reasonable grounds to believe a particular bank holds funds for the judgment debtor, including:
previous payments received from the debtor
bank transfer records
cheque payments
banking details provided during the course of dealings
contracts, invoices, and payment instructions
email correspondence discussing payment arrangements
This evidence can then be used to show the court why you believe the debtor maintains funds with a particular bank.
What if you still have no idea
While it's possible to proceed against multiple banks using a spray and pray strategy, it can get very expensive very quickly since realistically speaking most will not hold funds for the debtor, and they can claim against you for costs of attending court.
As a rule, we identify likely banks before commencing garnishee proceedings rather than using garnishee proceedings as a way to identify bank accounts.
If we are truly in the dark, a judgment debtor summons (JDS) may be a more suitable starting point - it forces the debtor to attend court and disclose their financial situation, allowing creditors to make informed decisions on how to proceed.
That’s it from us, and we wish you a smooth recovery 🙂
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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