Debt Recovery & Debt Collection Enforcement Methods Ranked: The Best Way to Get Paid! 💰🔥

Winning a lawsuit is one thing—actually recovering the debt is another battle. If a debtor refuses to pay despite a court judgment, you need the right enforcement action to get results.

Not all debt recovery methods are equally effective. Based on my experience, here’s how I rank them:

1. Garnishee Order – The Fastest and Most Effective Method

If the debtor has money in the bank, you can freeze and seize it. No need to chase down assets, navigate court delays, or deal with evasive debtors. Direct, efficient, and deadly.

2. Writ of Seizure and Sale (WSS) – Strong Pressure Tactic

If the debtor owns valuable assets—real estate, vehicles, inventory, furniture, or even shares—WSS allows you to seize and sell them.

Challenges:

• Competing claims from banks and secured creditors.

• Low resale value for certain assets.
  

Still, it’s a powerful tool that often pressures debtors into paying up.

3. Judgment Debtor Summons (JDS) – Asset Investigation & Legal Pressure

This forces the debtor to disclose their assets under oath. If they lie or refuse to comply, they risk contempt of court.

🔹 If the court orders monthly repayments under a JDS and the debtor fails to pay, they can be jailed for up to 6 weeks.

4. Bankruptcy & Winding Up – Overrated Last Resorts

Many creditors assume bankruptcy (for individuals) or winding up (for companies) will magically recover debts. Not true.

When it works: If the debtor has significant assets to liquidate.

When it doesn’t: If they’ve already siphoned funds or lack recoverable assets.

Bankruptcy and winding up are better as threats to pressure payment rather than actual recovery tools.

Which Debt Recovery Method Works Best?

Every case is different, but garnishee orders and WSS usually offer the best chance of getting paid.

💬 Have you used any of these methods? What worked for you? Drop a comment!

AUTHOR PROFILE

Rudi Cheu is the principal of Rule & Co. Advocates & Solicitors; a Malaysian law firm focusing on practical and cost-effective solutions for debt recovery and commercial disputes. With nearly a decade of debt recovery experience under his belt; Rudi is passionate about helping businesses navigate debt recovery challenges and shares insights at www.rulecolaw.com/blog and recoverdebt.my

He can be reached via Whatsapp: +60102028095 or via email: rudi@rulecolaw.com