Debt Recovery in Queensland - Civil Law | Go To Court Lawyers

Debt Recovery
in Queensland
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There are many circumstances under which a debt may arise and for which you may wish to
institute debt recovery proceedings in Queensland. A debt may arise due to an unpaid invoice or
account, a dishonoured cheque, an “IOU”, money loaned and not repaid, work done that has not
been paid for (but payment had been agreed on prior), unpaid rent or debt arising from a contract
for goods or services. A debt arises if there is a disagreement over a fixed, specific or agreed sum.
If the amount owing is in dispute, or there is an issue over whether someone is liable to pay, a
matter is not strictly speaking a debt recovery issue and may relate to more complicated contractual
matters.
gotocourt.com.au
CIVIL LAW
Phone: 1300 636 846 Website: gotocourt.com.au
Sending a Letter of Demand
If you believe you are owed a
debt and wish to recover that
debt, there are a number of
options available to you. The
first step should always be to
attempt negotiation with the
other party. You should send a
letter to the debtor (the person
you believe owes you a debt)
explaining the circumstances
of the debt, namely, how much
you believe they owe you, why
they owe you that sum, how
you wish to be paid and when
and the consequences of
non-payment (ie, that you will
institute proceedings).
This is referred to as a letter
of demand. The letter cannot
be harassing, threatening
or intimidating, and should
not purport to mimic an
official court document. The
debtor then has the option of
responding to or ignoring the
letter of demand. If they do
not respond, or they respond
unsatisfactorily, you can pursue
the matter in the Queensland
Civil and Administrative
Tribunal (“QCAT”) or the courts
depending on the monetary
value of the debt.

Under the Queensland Civil
and Administrative Tribunal
Act 2009, QCAT can hear
debt disputes of less than
$25,000. In order for QCAT to
have jurisdiction the debt must
have occurred or originated in
Queensland. To commence a
complaint with QCAT you must
file an application, and then
serve this application on the
respondent (the person you
believe owes you a debt) within
28 days of filing the application.
The respondent may then wish
to provide a response. If the
respondent fails to respond
within 28 days, the applicant
can request that QCAT
make a default decision
in favour of the applicant.
If the respondent does
respond, the response must
be served on the applicant.
QCAT will then list the matter for
mediation. If the mediation is not
successful, the matter will go to a
hearing for determination. Note
that for matters under $3000 no
mediation will occur and the
matter will go directly to a
hearing, unless QCAT
orders otherwise.
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CIVIL LAW
Where to commence debt
recovery proceedings
Debt recovery
proceedings in QCAT
QCAT handles debt recovery
matters of a monetary value
up to $25,000. Debt recovery
matters over $25,000 and up
to $150,000 are heard in the
Magistrates Court, matters
of between $150,000 and
$750,000 are heard in the
District Court, and the Supreme
Court hears matters over
$750,000. Before you proceed
to QCAT or to court, you can
also attempt mediation through
the Department of Justice and
Attorney General’s Dispute
Resolution Branch.
This is a facilitative process
which puts parties in front of
an impartial mediator whose
purpose is to encourage free
flow of conversation and allow
for discussion of a possible
resolution. Mediation is not
legally binding unless the
parties wish to make it so, and
in which case, must write down
that the agreement is legally
binding.

gotocourt.com.au
CIVIL LAW
Debt recovery proceedings
in the Courts
If the debt is for over $25,000,
you will need to initiate debt
recovery proceedings in either
the Magistrates Court, the
District Court or the Supreme
Court, depending on the value
of the debt. Court procedure
in Queensland is determined
by the Uniform Civil Procedure
Rules 1999. To initiate
proceedings, you must file a
claim and a statement of claim
laying out your debt recovery
claim. These documents must
then be served on the debtor.
The debtor may wish to defend
Enforcing a QCAT
debt recovery decision
If QCAT finds in favour of the applicant in a debt recovery matter,
the respondent is obliged to pay their debt. If they do not adhere
to QCAT’s judgment, an enforcement warrant may be sought.
Once a QCAT decision is registered in the Magistrates Court, the
Magistrate can order an enforcement warrant which allows for
seizure and/or sale of the debtors property in order to pay the
debt they owe under the QCAT judgement.
“ First Step should always be to
attempt Negotiation ”
themselves against this claim
and must do so by filing their
defence documents with the
court, and then serving them
on you. You have the option to
respond to this defence, or you
can file with the court a request
for trial date.
In many cases the matter will
be referred to mediation or
other form of alternative dispute
resolution which is conducted
on a “without prejudice” basis
with a view to settling the matter.
A registrar may refer the matter

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CIVIL LAW
to mediation or a party may do so themselves. If mediation is
unsuccessful the matter will be listed for hearing and a judge
will determine whether you can recover the debt owed. Note that
court proceedings are more complicated and expensive than
tribunal proceedings so it is prudent to seek legal advice before
commencing proceedings.
Remember, you are NOT alone !
Where you go from here
depends on your situation.
Everyone has their own
individual priorities and
demands on their life that
they need to deal with.
This information guide
aims to point you in the
right direction so that
you know the legal options
available to you - options
that many of our clients are
not aware of before talking
to us.

gotocourt.com.au
CIVIL LAW
Call anytime between
7am to Midnight, 7 days on
1300 636 846
and speak direct with a Civil
Law Lawyer to get your debt
recovery matter assessed.
You can also
request a callback at
gotocourt.com.au/civil-law
Scan this QR code now
to access more Civil Law
information:
When you call the hotline
you will speak directly with a
lawyer. Your conversation will
be treated with the strictest of
confidentiality and sensitivity.
At the end of the call you will
have some clarity on the steps
you need to take next and how
you can have the best chance
at an outcome that will ensure
that you will attend Court armed
with knowledge and support.

Debt Recovery in Queensland - Civil Law | Go To Court Lawyers

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