Interest on civil debt

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When you make a new enforcement application to the court, you can ask to be paid interest on civil debt more than $3000.

Please note: an application to vary an attachment order is not a new enforcement application.

Interest on civil debt is calculated differently after a judgment order has been granted

After a judgment order, interest on civil debt is:

  • calculated at 5% a year on orders made on or after 11 July 2011
  • accumulated monthly
  • added in retrospect when a creditor applies for enforcement action.

You as creditor can claim:

  • simple interest on the debt, not compound interest
  • interest on the whole debt, accounting for payments already received from the debtor
  • interest on the debt only, not on fees or other costs the debtor has to pay.

Your right to claim interest on civil debt is governed by section 65A of the District Courts Act 1947 (external link)

Calculate the interest and add it to your civil debt application

To calculate the amount of interest you can claim on a civil debt, you need to:

  • identify the total civil debt amount stated in your judgment order
  • calculate 5% per year on the amount.

To claim this amount of interest on civil debt, you can either:

  • write the interest amount on the new enforcement application form
  • ask at the financial assessment hearing for the interest to be added to the debt.

If you want help calculating the interest, or your judgment order is older than 1 July 2011, you can:

Please note: an application to vary an attachment order is not a new enforcement application.

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