Default Inquiry in WA: What Happens When a Debtor Breaks a Payment Plan

The court set up a payment plan. The debtor made a few payments, then stopped. Now you are stuck with an instalment order that is not being followed and a judgment that is still unpaid. The default inquiry process under the Civil Judgments Enforcement Act 2004 (WA) is how you escalate from a broken payment plan to stronger enforcement tools.

What Triggers a Default Inquiry

A default inquiry is triggered when the debtor fails to comply with a court-ordered payment arrangement. This typically means missing two or more instalment payments under an Instalment Order (CJEA s. 33) or failing to pay by the deadline set in a Time for Payment Order (CJEA s. 32).

The default does not need to be total. If the debtor was ordered to pay $200 per fortnight and has been paying $50, that is a default — they are not meeting the terms of the order.

Filing for a Default Inquiry

You apply through the eCourts Portal using CJE Form 6, selecting the default inquiry option. The court issues a summons requiring the debtor to appear and explain why they have not met the payment terms.

The summons must be personally served on the debtor — the bailiff handles this at a service fee of $117.50.

What Happens at the Hearing

At the default inquiry, the Registrar or Magistrate examines the debtor about their current financial situation. The debtor may need to produce an updated Statement of Financial Affairs. The court then decides what happens next:

Vary the instalment order. If the debtor's circumstances have genuinely changed — lost a job, unexpected medical expenses — the court may adjust the payment amount or schedule rather than cancel the order outright.

Cancel the instalment order. If the debtor has the means to pay but is simply not doing so, the court can cancel the instalment order. This is the critical step, because cancellation of an instalment order is the prerequisite for an Earnings Appropriation Order.

Issue a new order. The court might replace the instalment order with a lump-sum Time for Payment Order, giving the debtor a final deadline to pay in full.

Escalating to an Earnings Appropriation Order

Under CJEA section 35, an EAO can only be made after the debtor has disobeyed an instalment order and that order has been formally cancelled by the court. You cannot skip straight to wage garnishment — the instalment-then-default-then-EAO sequence is mandatory.

Once the instalment order is cancelled at the default inquiry, you can immediately apply for an EAO. The court directs the debtor's employer to deduct a specified amount from each pay cycle and remit it to you. The employer deducts a $10 admin fee from the first payment and $5 from each subsequent one.

When the Debtor Does Not Show Up

If the debtor is properly served with the default inquiry summons and does not attend, the consequences escalate:

1. The court can proceed in the debtor's absence and cancel the instalment order
2. The Registrar or Magistrate may issue a Warrant for Arrest under CJEA sections 29 and 90
3. The bailiff (or police) arrests the debtor and brings them before the court for examination — the arrest warrant fee is $430

The warrant brings the debtor before the court for examination. The court then decides what further enforcement order, if any, is appropriate based on their financial position.

Other Options After Default

If wage garnishment is not viable (the debtor is self-employed, unemployed, or on Centrelink payments), the default inquiry gives you updated financial information to pursue other tools:

• Debt Appropriation Order if they have a bank account with funds
• Property (Seizure and Sale) Order if they own unencumbered goods or real property
• Wait if they are currently judgment proof, and re-examine when circumstances change

The judgment remains enforceable for 12 years from the date it became enforceable, and interest at 6% per annum continues accumulating throughout.

For the full enforcement sequence — from means inquiry through instalment orders, default inquiries, and escalation to EAOs and PSSOs — the complete WA judgment enforcement guide lays out each step with the forms and fees involved.

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