I have obtained Judgment against the Debtor, but he refuses to pay. What should I do?

                                                                    

INTRODUCTION

Once the court has made its final decision, declaring you as the victorious "Judgment Creditor," the power is in your hands. Meanwhile, the defeated party reluctantly assumes the role of the "Judgment Debtor."

As the Judgment Creditor, you hold the rightful claim to the amount specified in the judgment, known as the "judgment debt," which the Judgment Debtor is obligated to pay. However, what happens when the Judgment Debtor refuses to comply and ignores their financial responsibility?

Don't despair, for there are ways to recover what is rightfully yours. Let's delve deeper into these strategies, presented in simpler terms for those unacquainted with legal jargon, as we embark on a quest to reclaim the fruits of your hard-fought triumph.

WAYS TO RECOVER YOUR JUDGMENT SUM

Judgment Debtor Summons:

This is a court summons issued to the Judgment Debtor, requiring them to appear in court to provide information about their financial status. The purpose is to assess their ability to pay the judgment debt and determine the most appropriate recovery method.

Garnishee Proceedings:

In this process, the Judgment Creditor seeks a court order to freeze funds held by a third party, typically a bank or employer, who owes money to the Judgment Debtor. The frozen funds can then be used to satisfy the judgment debt.

Writ of Seizure and Sale:

This procedure involves obtaining a court order, known as a writ, to seize and sell the assets of the Judgment Debtor. The proceeds from the sale are used to satisfy the judgment debt. This method is typically applicable to tangible assets such as vehicles, machinery, or inventory.

Winding-up Proceedings:

If the Judgment Debtor is a company, the Judgment Creditor may initiate winding-up proceedings. This involves filing a petition to wind up the company and liquidate its assets to pay off the judgment debt. It is a serious step that can lead to the dissolution of the company.

Bankruptcy Proceedings:

If the Judgment Debtor is an individual, the Judgment Creditor may initiate bankruptcy proceedings. This involves filing a bankruptcy petition against the Judgment Debtor, resulting in their assets being liquidated to repay the judgment debt. Bankruptcy proceedings can have significant implications for the individual's financial standing and creditworthiness.

Order of Committal:

In cases of non-compliance or willful disobedience by the Judgment Debtor, the Judgment Creditor can seek an order of committal. This order can result in the Judgment Debtor being imprisoned for their failure to comply with the court's judgment or orders.

CONCLUSION

It is important to note that these procedures may have specific requirements, timelines, and legal implications in accordance with Malaysian law. It is advisable to consult with a qualified legal professional or seek appropriate legal advice to navigate these procedures effectively and ensure compliance with the relevant legal framework.

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