Can Debtors Stop A Garnishee Order In Malaysia?
Updated: 1 day ago
They say keep your friends close, and your judgment debtors even closer!
After a garnishee order to show cause has been obtained and served, the next stage is the hearing, where the judgment debtor and, in certain circumstances, the garnishee bank can raise objections.
Here’s a quick look at what they can do.
How banks can stop a garnishee order
As garnishee, a bank may object to a garnishment where it is also a third party with a legitimate claim or reason why the funds should not be paid to the creditor.
For example:
the bank has a right of set-off
the funds are subject to the bank’s own claim
the funds are jointly held or subject to third-party rights
Where the debtor has ordinary funds in a savings or current account, the bank will usually comply with the court's directions.
How a debtor can stop a garnishee order
The judgment debtor can also raise objections before the Garnishee Order Absolute is made and potential objections include:
the funds belong partly or wholly to someone else
the account is jointly held
the money is held on trust
the judgment debt has already been paid or settled
there is a procedural or legal defect
the creditor is claiming the wrong amount
The key question is whether the money falls under the scope of what a garnishee order applies to and can therefore legally be used to satisfy the judgment.
Simply needing the money is generally not enough, though the judgment debtor may argue that a full garnishment would deprive them of the ability to sustain themselves and ask to reduce the amount garnished. Whether this is granted is at the court's discretion.
The value of detective work
If the creditor has a valid judgment, follows correct procedures, and the funds genuinely belong to the debtor, there is usually little basis for permanently stopping the garnishee order.
In these cases, objections are more likely to be a delay tactic than anything else.
This is why good detective work before starting proceedings matters. The more is known or can be reasonably assumed about the account, the fewer surprises there are likely to be at the hearing, and the more confident a creditor can be that the garnishee order absolute will not be stopped.
That’s it from us - we did say this would be a quick look, after all 🙂
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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