Debt Redirection Order in the ACT (Bank Account Garnishee)

A debt redirection order is the ACT's version of a garnishee order on a bank account. It lets you capture money sitting in the debtor's account — or money owed to the debtor by any third party — and redirect it to you.

Unlike earnings redirection, which produces ongoing deductions from wages, a debt redirection order is typically a one-time capture. It grabs whatever balance the bank holds at the exact moment the order is served.

How It Works

The order targets money owed to the debtor by a third party. Most commonly that third party is a bank, but it can also be anyone else who owes the debtor money — a business partner, a tenant paying rent, a client with an outstanding invoice.

When served on the bank, the order attaches funds then held and redirects the available balance (up to the judgment amount) to you. The bank must comply; there's no choice in the matter.

Applying for the Order

You'll need:

• A debt redirection order application
• An affidavit in support (CPR Rule 2351) — confirming the debt balance, the debtor's default, and details of the bank account or third-party debt
• Court fee — $176 for individuals, $351 for corporations

File everything at the ACT Magistrates Court Civil Registry. The same prerequisites apply as for any enforcement tool: you must have served Form 2.49 (pre-enforcement notice) at least seven days before filing.

Serving the Order

The order is served on the third party (the bank) at their registered office, with a copy served on the debtor. The order takes effect seven days after service on the bank.

Once effective, the bank redirects available funds to you. If the account balance is less than the judgment debt, you receive whatever is there and must pursue the remainder through other means.

Important Limitations

Joint accounts. A standard debt redirection order cannot ordinarily attach money in an account held jointly with someone who is not a judgment debtor, unless both account holders are judgment debtors or a statutory rule permits joint-account attachment. If the debtor's savings account is in joint names with their spouse, the money in that account is generally protected.

One-time capture. The order attaches to debts currently due or accruing when the bank receives it. It doesn't create an ongoing obligation to redirect future deposits. If the debtor's account is nearly empty on the day the order lands, you get very little. For ongoing collection, an earnings redirection order is better.

Social security deposits. Centrelink, JobSeeker, and other federal welfare payments retain statutory protection even after they land in a bank account. These funds cannot be redirected.

When to Use It

Debt redirection works best when:

• You know the debtor has a meaningful bank balance
• You want quick, one-time collection rather than ongoing deductions
• The debtor is self-employed or has irregular income (no employer to garnish wages from)

If you don't know where the debtor banks, an enforcement hearing (Form 2.50/2.51) compels them to disclose bank account details under oath.

The Enforcing an ACAT Order in the ACT guide walks through both debt redirection and earnings redirection orders with the exact forms, fees, and service rules you need to file correctly the first time.

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