Strata Levies Soar as the Cost of Living Rises

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.




How Will You Handle Your Blocks Overdue Levies?

With overdue strata levies on the rise due to the COVID-19 situation many strata schemes will soon find out how many of their owners are struggling to meet their levy commitments.

Also, recent Government announcements to personal and corporate insolvency laws will have a dramatic impact on the way overdue strata levies are recovered.

In this paper we provide:

  • A Snapshot of the Changes to Levy Recovery Practice
  • An Overview of those Changes
  • Details of the Ramifications of the Changes
  • Information about Payment Plans for Overdue Levies
  • Information about Template Payment Plan Documents

After reading this paper Levy Recovery Practice Changes Due to Coronavirus if you would like a copy of our ‘template payment plan documents’ and/or would like assistance with managing your levy recovery payment plans please email jsmmarketing@muellers.com.au

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




When does the levy arrears collection process kick in?

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

That’s why it’s imperative that any strata levies in arrears are recovered in a timely manner to ensure that sufficient funds are always readily available.

So what is the process for:

  1. Levy Issues
  2. Levy Payments
  3. Levies in Arrears
  4. Collection of Levies in Arrears

To find out download our paper here NSW Levy Debt Collection Process

Specialist paralegals and lawyers are not only expert collectors and negotiators; they are highly skilled in all essential aspects of levy recovery.

Speak to the specialist NSW levy collections experts here or call 02 9562 1266, we’re happy to assist.

 




Did You Know the Sheriff Can Play an Important Role?

Did you know that the Sheriff can play an important role in the recovery of overdue strata levies?

How, you ask?

1. The Sheriff can be a very important ally when an owner fails to pay their strata levies, ignores repeated requests for payment and all else fails. So let’s bring in the Sheriff! Here’s how:

A Sheriff may act on a writ that we have arranged for the court to issue. Firstly, the Sheriff will attempt contact with the debtor via phone or written correspondence. If there’s no response the Sheriff will attend the debtor’s property and seize assets to be sold at auction to cover the value of the levy collection debt.

Sheriffs have been known to seize cars, bikes and household goods etc. This is called a ‘Sheriffs sale’ – it’s important to note that sometimes these can take time.

On a positive note, often just the Sheriff turning up on the debtor’s doorstep will action them into paying their strata levies.

2. Also, upon obtaining a Supreme Court Order for possession of a property, the Sheriff can then take possession of the property so it can be sold to pay the strata levy debt.

3. Sheriffs can also assist when the debtor has ignored an examination order to attend the court to explain his or her financial circumstances, an arrest warrant can be issued and the Sheriff can then arrest the debtor and take them to the court to be examined.

This can assist you in ascertaining the debtor’s financial circumstances and obtaining employment information so you can take further action and garnishee wages for payment of the outstanding strata levies.

So, how can you help?
Phone Numbers

Did you know that all Sheriff matters initially now go to the COU? From here, the Sheriff will attempt to make contact with the debtor via written correspondence and phone calls.

So, if you’re able to provide the debtor’s phone numbers at this point the Sheriff will more than often get a much better result.

Licence Plate Numbers

If the Sheriff has had no luck when phoning the person they will visit their premises during business hours and if the person isn’t available (as most people aren’t during these hours) they will leave a business card requesting them to call the Sheriff’s office.  Clearly, this is often ignored by the owner who is choosing not to pay their outstanding strata levies.

Again, if you can provide us with the licence plate number of the car the owner drives there is a strong chance that this will help us (and the Sheriff) locate the debtor quicker and recover the outstanding strata levies.

So, the Sheriff can be very effective in being that extra length of the stick to ‘poke the bear’ – and yes, some strata levy debtors will respond to the Sheriff even though they’ve already ignored repeated requests for payment of overdue levies.

Oh, and did you know…

Some interesting historical information on what was once part of a Sheriff’s role in NSW. They were once responsible for:

  • Carrying out death sentences in criminal cases
  • Discharging the duties of the Coroner
  • Running the gaols
  • Executing all the judgments, decrees and orders of the Supreme Court

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




We LOVE those Garnishee Orders!

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.