Interpleader Application in WA: Third-Party Claims on Seized Property

The bailiff shows up at the debtor's address with a Property (Seizure and Sale) Order and starts tagging items. Then someone else — a spouse, a housemate, a leasing company — says "that's mine, not the debtor's." This is where the interpleader process kicks in.

An interpleader is the legal mechanism for sorting out competing claims to property the bailiff has seized or is about to seize under the Civil Judgments Enforcement Act 2004 (WA). It exists because the bailiff is not in a position to decide who owns what — that is a question for the court.

How a Third-Party Claim Works

When a third party believes the bailiff has seized (or is about to seize) their property during enforcement, they lodge CJE Form 28 (Notice of Claim Against Property Seized) with the court. This puts the seizure on pause for that specific item while the dispute is resolved.

The bailiff then issues an interpleader notice to you, the judgment creditor. You have a choice:

Accept the claim. If you accept the third-party claim, notify the bailiff or court as directed in the interpleader notice so the item can be released and the bailiff can move on to other assets. Form 21 is for allowing an objection to an Earnings or Debt Appropriation Order, not a claim against seized property. This makes sense when the claim is obviously legitimate — the item is clearly under a hire-purchase agreement, or a lease document proves ownership.

Contest the claim. If you believe the property actually belongs to the debtor and the third party's claim is a sham, you contest it. The matter goes before a Magistrate for a formal hearing where both sides present evidence of ownership.

Common Scenarios

Spouse or partner claims household goods. The debtor lives with a partner who says the TV, couch, or appliances are theirs. Ownership of household goods in shared living situations can be murky. Receipts, credit card statements, or gift records help — but joint purchases are often difficult to untangle.

Finance company claims a vehicle. The debtor drives a car that is still under hire-purchase or a secured car loan. The finance company holds title until the loan is paid off. A PPSR search before filing the PSSO would have revealed this — and it is one reason running a PPSR search is worth doing before you spend $269 on the PSSO application.

Leased equipment at a business. If the debtor operates a business, some of the equipment on the premises may be leased. Photocopiers, EFTPOS terminals, and some machinery are commonly leased rather than owned. The lessor can lodge Form 28 to reclaim their property.

Items stored at the debtor's premises by someone else. A friend's tools in the garage, a relative's furniture being stored temporarily — if it belongs to someone else and they can prove it, the bailiff cannot sell it to satisfy the debtor's judgment.

What Happens at the Hearing

If the claim is contested, the Magistrate hears evidence from both sides. The third party needs to prove ownership — invoices, receipts, registration documents, loan agreements, lease contracts, or witness evidence showing the property was theirs before the judgment was entered.

The burden is on the claimant to demonstrate ownership. If they cannot prove it, the property stays seized and the bailiff proceeds with the auction.

If the Magistrate finds the property does belong to the third party, it is released and cannot be used to satisfy the judgment.

Private Sale Threshold

Under CJE Regulations Part VI, if the bailiff wants to sell seized personal property valued over $3,500 by private treaty instead of public auction, they must apply to the court using CJE Regulations Form 8. This can come up when a single high-value item (a vehicle, for example) would fetch a better price through a private sale than at a general auction.

Avoiding Interpleader Problems

The best way to avoid interpleader delays is to do your homework before applying for a PSSO:

• Run a PPSR search to identify security interests on vehicles and equipment
• If the debtor shares a residence, be aware that not all goods on the premises belong to them
• Ask about asset ownership during the means inquiry — the debtor is under oath and must disclose what they own versus what belongs to others

The complete WA judgment enforcement guide walks through the pre-enforcement audit process, including the searches that help you identify which assets are clear targets and which ones are likely to trigger third-party claims.

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