As the financial pressure heightens with rising interest rates and cost of living increases we’re seeing more and more people default on their levy payments.

We all know that raising and collecting strata levies for building maintenance and scheme administration is fundamental to an efficiently run strata complex.

When owners corporations allow owners to fall behind in their levy payments it leads to cash flow problems for an owners corporation which could lead to critical building works not being addressed and many other issues.

Recovering Overdue Levies

The recovery of strata levies is unique and requires a detailed understanding of the various strata laws as they apply in NSW.

So, when it does become a legal issue, recovering overdue levies is highly technical with a number of steps that must be taken before commencing legal action to recover the overdue levies from an owner.

Muellers WINS Huge Levy Debt Case and Rewrites the Law!

Sale of Apartment Owned by Monk who Disappeared Overseas Sets Legal Precedent!

Owners Corporations and strata managers in NSW sometimes wonder how they can recover outstanding strata levies from owners of strata units who’ve disappeared and are nowhere to be found. Well, do not be disillusioned JS Mueller & Co Lawyers has now given hope to owners corporations and strata managers.

Read on…Sydney Morning Herald (SMH) Domain

Overwhelmed and Need Assistance with Levy Debt Recovery?

We are expert collectors and negotiators highly skilled in all essential aspects of levy debt collection.

• We have been collecting overdue levies for 30+ years.
• Our dedicated team of paralegals do nothing but levy debt collection.
• We do levy debt collection across regional and metropolitan NSW.
• We will get results.

Now you can, sit back, relax and let us collect those overdue levies for you!

Contact Us

Speak to the specialist NSW levy collections experts here, we’d be happy to assist.

Strata apartment living is the fastest growing form of property ownership across Australia with more than half of these apartments located in the greater Sydney area.

Alarmingly, recent and extensive research* has found that up to 85% of these buildings built in NSW since the year 2000 have some form of building defects.

Sydney Olympic Park Opal Tower

The recent controversy surrounding the Opal Tower located in the Sydney Olympic Park precinct highlights the seriousness of some of these defects, leaving home owners lives turned upside down. So, what are their rights?

Statutory Warranty Scheme

Under NSW law all residential buildings:

• Less than 6 years old are covered by a ‘statutory warranty scheme’ for major defects
• Major defects claims can be made for up to 6 years
• Any non-major defects can be claimed for up to 2 years
• Buildings older than 6 years may have different warranty periods and it is recommended to seek legal advice

All owners who are still covered by these warranties have the right to pursue the developer and builder for rectification of building defects.

How do building defects affect strata levies?

Strata levies are a critical and essential part of ensuring the value of a property is protected.

The owners corporation has the statutory duty to ensure common property is safe and kept in good repair, therefore apartment owners in structurally unsafe buildings could face increased special levies.

When a building defect is on common property the owners corporation should add the repair of the defect to the agenda of a general meeting for consideration and resolution.

The good news is that Opal Tower home owners are covered under the statutory warranty scheme however the not so good news is that it leaves home owners forced to find alternative accommodation or perhaps live in unsafe conditions with the possibility of facing a hefty special levies bill whilst the situation is being resolved.

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

*University of NSW City Futures Research Centre.

During times when owners suffer financial difficulty, owners corporation can often find themselves out of pocket with overdue and unpaid strata levies. This can be a huge concern to strata communities, especially if an owner declares bankruptcy and they face the possibility of missing out on payment of any overdue strata levies or recovery costs.

So when can an owner who does not pay strata levies on time be made bankrupt? And what happens once an owner is bankrupted?

Bankruptcy is a legal process that can occur when an individual cannot pay their debts as and when they fall due.  In Australia bankruptcy is governed by the Bankruptcy Act 1966 (Cth) and is regulated by the Australian Financial Security Authority (AFSA).

Once a person becomes bankrupt, control is given up of their finances and assets to a Trustee in exchange for protection from legal action being taken against the person by an entity to which they owe money.

So, what happens when a lot owner is unable to pay their strata levies? Can they be bankrupted?

Bankrupting an Owner

• A bankruptcy notice can be issued in the event that an owner owes strata levies, is sued by the owners corporation, and judgment is entered against the owner for more than $5,000.
• Usually, we will exhaust all avenues for recovery of outstanding strata levies before seeking the strata manager/owners corporation’s instructions to bankrupt the owner.
• However, if the judgment debt is significantly higher than $5,000, the strata manager/owners corporation would normally provide an instruction for us to move to bankrupt the owner immediately after entry of judgment against them.
• Upon receipt of instructions, we perform a bankruptcy search to ensure the owner has not already been declared a bankrupt.
• If the owner is not already bankrupt, we draft and file a bankruptcy notice with the Australian Financial Security Authority – the current filing fee is $470.
• Once filed, we then serve the bankruptcy notice on the owner.
• Then, the owner has 21 days to make payment of the amount claimed in the bankruptcy notice.
• If the amount claimed remains unpaid after 21 days, we seek the strata manager/owners corporation’s instructions to issue a creditor’s petition to commence court proceedings to make the owner bankrupt.
• If the strata manager/owners corporation instructs us to proceed, we commence bankruptcy proceedings in the Federal Circuit Court against the owner.
• If the Court makes an order for the owner to be declared a bankrupt, a Trustee is appointed to the owner’s estate.

What happens once an owner is bankrupted?

• The Trustee obtains information about the owner’s financial circumstances including any assets owned by the owner and any liabilities of the owner.
• After completing his or her investigations, the Trustee will normally move to sell the owner’s assets to pay the liabilities owed by the owner.
• This often involves the Trustee obtaining possession of the owner’s strata lot and selling the lot.
• Once the lot is sold, the owners corporation is normally paid the overdue levies, interest and recovery costs.

For NSW levy collection or strata legal advice contact us here or call 02 9562 1266, we’re happy to assist.

Thanks Strata, as a wrap up here are some useful links from 2017…

• We shared our strata knowledge through our new resource library
• We listened to you and launched our new brand and website
• We developed strata by-law and meeting templates for the new strata laws
• We tweeted, 54 times sharing the latest in strata law
• We posted, 45 times on LinkedIn with the latest updates
• We collected for over 600 new levy debt recovery matters plus our regulars
• We expanded our team to better service the strata industry

We’re taking a break from 5.30pm 21 December 2017 and returning on 15 January 2018.

We wish you and your families a safe and happy ‘Festive Season’ and look forward to working with you in 2018.

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

Why do we love them so much?

Because Garnishee Orders are the most effective way to recover outstanding levies.

So, what is a Garnishee Order?

• A Garnishee Order is an order from the Court ordering someone else to pay us money on behalf of the debtor
• They are issued against someone who we know is holding money for the debtor or owes money to the debtor. We can garnishee:
• A bank account if we know the details of their bank account
• Their wages if we know where they work
• Rent from their investment unit (not necessarily the unit in levy arrears)

When can we issue a Garnishee Order?

• Garnishee Orders can ONLY be issued after we have obtained Judgment – they are one of the ways we can enforce a Judgment and are the BEST option available

How can you help?

To help us recover your outstanding levies faster, when you give us instructions to collect overdue levies, if known, always provide the following details about the debtor:

• Their bank account details
• Their employment details
• Details of any of their investment properties

So next time you brief JS Mueller & Co on a levy recovery matter don’t forget to provide us with those extra little details.

Click here for the full details of the new Levy Collection New Laws

For strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

At JS Mueller & Co we know how to poke the bear!

How, you ask?

Well, we know how to approach or should we say, poke, a lot owner who does not pay their levies on time.

Knowing the right approach can often reap the rewards. That’s where JS Mueller & Co’s 40 years experience comes in handy.

There are many types of bears but in general, we can narrow them down to three types. Check them out here:  Levy Debt Collections

Need a levy collection debt recovery or strata law advice contact JS Mueller & Co today on 02 9562 1266 or click here now.

PS: No bears were harmed in the making of this :).

Did you know that the information an owners corporation has about their owners can actually make it much simpler for us to act more effectively in recovering strata levies?

To assist you with the details that can help us, the team at JS Mueller & Co has developed a handy list of items for consideration when briefing your next strata levy debt recovery instruction:

1. If you know that the unit is tenanted but the address for service of notices is at the unit, let us know, particularly if you’re aware of whom the real estate agent is.
2. When advising your levy recovery person to enter Judgment and take the next step, the following information can greatly assist:

•  Details of where the lot owner works so JS Mueller & Co can organise to garnishee their wages – much cheaper and more effective than a Sheriff.
• Details of their motor vehicle type and registration number and a time they’re normally home – this will make it easier for the Sheriff to seize goods.

Historically when matters have been difficult to serve, the information an owners corporation has access to, can assist us greatly in a successful and quicker levy debt recovery.

Here are some examples of how information has assisted JS Mueller & Co in faster recovery of strata levies… who would have thought!

 Hockey Training

We’ve successfully served a guy with a Statement of Claim (SOC) at hockey training.  All because the owners corporation advised us that he rode his bike once a week to hockey training.

Pony Club

JS Mueller & Co was able to serve another woman at Pony Club when we were advised by an owner/occupier that she stored her Pony Club stuff in the garage.

So, you can see little pieces of information an owners corporation knows about a lot owner can provide us the little piece of magic we need to get a successful result.

Keep the list above in a handy place for when you next provide a levy debt recovery instruction.

Our levy collection service is available across regional and metropolitan NSW so let us know if you need any assistance with levy recoveries, we’d be happy to assist.

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

With the introduction of the new strata laws, you’ll need to be aware of the key changes to the levy collection procedure.

To familiarise yourself with the top 10 changes click here –  Levy Collection Changes Under the New Strata Laws

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

The Supreme Court of NSW has recently held in two cases involving JS Mueller & Co that a bankrupt lot owner will not be entitled to a stay of an eviction from their strata unit where it is clear that the owner has made no attempt to pay overdue strata levies.

Please click here to view the full article – Stay of Eviction Refused for Levy Debtors

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.