An Overview of Debt Recovery in Queensland

Are you looking for information on debt recovery in Queensland?

A debt may arise in many different circumstances in Queensland, such as breached loan agreement or unpaid invoices.

There is a broad array of avenues to pursue in recovering a debt from an individual including Court or tribunal action, and enforcement action.

There are also a number of enforcement options available, such as enforcement warrants, statutory demands, and/or bankruptcy notices.

In this article our debt recovery lawyers will be touching on and discussing a number of these possibilities.

Do you want to know about Debt Recovery in Queensland? Be referred to the best debt recovery lawyers on the Sunshine Coast

Sending a Letter of Demand

The creditor may wish to begin with a formal letter of demand, setting out the background and particulars of the debt, and outlining the consequences of non-payment.

Using this as a first step may be more commercial in attempting the negotiate with the debtor, and may possibly avoid legal proceedings and further costs.

The debtor then has the option of responding to, or ignoring the letter of demand.

If they do not respond, or they respond unsatisfactorily, the creditor may choose to pursue the matter in either the Queensland Civil and Administrative Tribunal (‘QCAT’), or the courts (depending on the claim amount).

Queensland Civil and Administrative Tribunal

QCAT handles debt disputes about a fixed or agreed sum of money, valued up to and including $25,000. Examples of the disputes QCAT may handle include:

• Unpaid loans;
• Unpaid invoices, accounts, or demands;
• Dishonoured cheques;
• Payment for goods or services provided; and
• Unpaid rent/hire.

QCAT is generally a no costs jurisdiction.

Meaning there is a minimised risk if the applicant is unsuccessful, as they will likely not be liable to pay the respondent’s costs.

However, on the flip side, if you decide to engage legal representation, you will be liable for those costs.

Legal representation is not automatically granted in QCAT, and must be applied for.

QCAT is designed for self-represented litigants for this purpose and provides plentiful information on their website on the processes.

For more information on QCAT’s minor civil dispute processes, please see their website – https://www.qcat.qld.gov.au/case-types/debt-disputes.

Debt Recovery in Queensland Courts

Pursuing a debt matter in the Magistrates/District/Supreme Court of Queensland may be more appropriate for a debt recovery proceeding, depending on a number of factors.

Within the courts, the creditor is not only able to claim the originating filing fee, but also costs in accordance with Schedule 1 and Schedule 2 of the Uniform Civil Procedure Rules 1999 (Qld).

To initiate proceedings, the creditor must file a claim and a statement of claim outlining the debt recovery claim.

These documents must then be served on the debtor. The debtor will then have 28 days after service to file and serve a conditional or unconditional notice of intention to defend.

In the event the debtor fails to do so, the creditor may proceed to apply for judgement in default.

This can commonly be useful leverage for a debtor to pay, as once judgement is obtained, a copy is sent to a credit reporting agency for their records.

Alternatively, if the debtor files a defence and the court decides the defence to the action is not sufficient, the creditor may apply to the court for a summary judgment.

Once a judgement is obtained, the creditor may proceed with enforcement proceedings against the individual.

This may entail a warrant for re-direction of earnings, a warrant for seizure and sale of property, or a warrant for payment by instalments.

Debt Recovery in Queensland – Skip Tracing

In the event the creditor decides to commence proceedings in QCAT or the courts, it is important to know where the debtor is located in order to be able to serve documents upon them.

The creditor is responsible for serving the relevant documents upon the debtor, and vice versa.

Some debt collection agencies offer skip tracing services, to attempt to locate the debtor.

Otherwise, the creditor may be required to make an application for substituted service, which may cause further delay and costs.

Debt Recovery in Queensland – Key Takeaways

There are often short timeframes involved with debt collection is Queensland.

In accordance with section 10 of the Limitation of Actions Act 1974 (Qld), an action founded on simple contract or quasi-contract or on tort, shall not be brought after the expiration of six (6) years from the date on which the cause of action arose.

It may be that if these dates are missed, you may lose your rights.

If you would like further information, or would like assistance in recovering a debt, please feel free to contact our referral solicitors today.

Do you want to know about Debt Recovery in Queensland? Be referred to the best debt recovery lawyers on the Sunshine Coast