The New Zealand legal system offers a two stage process in the recovery of unpaid debt:

1. Obtaining Judgment
2. Enforcement of that Judgment

Obtaining Judgment

There are a number of options available for the obtaining of Judgment all dependent on the circumstances and suitability of the claim.

These options are:

(A) Disputes Tribunal.

This procedure is to be used when:

1. The debt is disputed (as opposed to will not and/or cannot pay in which case an ordinary proceeding is to be used); and
2. Is available as of right for amounts under $7,500.00; or
3. By consent of both parties which needs to be endorsed upon the proceeding jurisdiction can been increased from $7,500.00 to $12,000.00.

(B) Ordinary Notice of Proceeding.

This can be issued up to a maximum of $200,000.00 in the District Court. We recommend this proceeding for amounts up to $7,500.00, i.e. where the Disputes Tribunal is not applicable or cannot be used.

(C) Application for Summary Judgment.

We recommend this for amounts over $7,500.00 and under $200,000.00, which is the maximum of the District Court jurisdiction and where you can demonstrate by affidavit "that the debtor has no defence to the claim".

(D) Statutory Demand.

If the debtor is a company a Statutory Demand Notice can be issued under Section 289 of the Companies Act 1993. This replaces the old Section 218 Notice, and effectively is the first step in putting a company into liquidation.