Judgment Debt Recovery Act
- The act allows the debtor to make payments. Either the debtor or creditor can apply to change or cancel the payment plan. The approved payment plan stops any judgment against the debtor and supersedes any previous payment plan.
Payment plans aren't allowed if the debtor's income consists of payments from the Commonwealth Social Security Act 1947 or the Children, Youth and Families Act of 2005 (section 24). - Payment plans can't be approved, changed or canceled by the court unless the debtor is questioned in person or the judge is otherwise satisfied that the change is warranted. The judge can summon the debtor to be questioned by himself and the creditor. The questions can include the debtor's source and amount of income, his property and assets, readily available cash and other debts, liabilities or financial obligations.
- If the debtor defaults on the payment plan, he can be summoned to court but can't be fined for failure to attend.
At the hearing, the judge can confirm, change or cancel the payment plan. A debtor with the means to pay who defaults "persistently and willfully and without an honest and reasonable excuse" can be imprisoned up to 40 days. The debtor must be present when the imprisonment order is issued and can appeal. The jail sentence can be canceled if the debtor makes the past-due payments.