[Tim Leach]

Hi All,

We have a garnishee order on an individual whose property was placed in the hands of debt recovery. It is currently successfully bringing in a few hundred a fortnight.

The other day I received a letter from a solicitors firm advising that the CBA were now the mortgagee in possession and were beginning the process for selling the property.

We are still receiving monies from from the garnishee order so I was wondering at what point we should stop the garnishee? Is the ratepayer still the old owner or the CBA?

Tim

[John Towers]

Hi Tim,

I believe that the rates are now the responsibility of CBA. I assume the bank has taken possession of the property & evicted the previous owner. You probably should talk to the bank/solicitors regarding payment.

JT

[Tim Leach]

Thanks John,

I did speak to the banks solicitors and they seemed happy for me to keep collecting from the garnishee, but i guess that’s more down to them then having less to collect later or write off once the sale goes through.

I’m not too worried as either way Council will eventually get paid, but from a personal point, if the previous owner is no longer liable, then we should probably return the monies up to when they ceased being liable.

Tim

[Dallas McConnell]

Hi Tim,

Your correct, the bank is happy to jag any additional funds it can and may not ultimately end up being liable for. The right thing to do is to cease the garnishee order against the previous owner of the property. I believe from a legal stand point, if they disputed the funds taken after the bank became mortgagee in possession, you may have to return them anyway.
House always wins

Cheers,
Dallas

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