Debt Collection Australia

What do I need to know about debt collection in Australia?

Australia is a common law country where debt collection is largely done through the civil law system. The laws and regulations vary from state to state in terms in of procedure and some other details, but the basic process is the same in most states.

Which courts do the different states in Australia use?

Once you know the value of the debt, you can work out where to file the matter so that you have the correct jurisdiction. Here are the jurisdictional requirements for the filing of a debt claim in each of the states. These facts relate to relatively small debts, as the largest debts are heard as matters in the supreme court or even in the Federal Court of Australia. The initial claims are filed as a statement of claim and then if a judgment is obtained, it may need to be enforced through a writ of execution or a writ for the levy of property. If these options are not available, then there may be other legal processes involved where the debtor has actually become insolvent. The definition of insolvency is where a person have become unable to pay their debts as and when they fall due and payable. For a company, if it has become insolvent, it is liable to be wound up. For an insolvent individual they may enter into the protection of bankruptcy to discharge their debts.

New South Wales

The vast majority of debts are dealt with by the NSW local court system or by the small claims tribunal. In NSW the Local Court deals with debt recovery claims up to the value of $60,000. If the amount of money that is owed exceeds $60,000 it goes to the District Court or Supreme Court of NSW.

Queensland

In Queensland, the Magistrates Court deals with debt recovery claims up to the value of $50,000. If the amount that is owed exceeds $50,000 it is in the District or Supreme Court of Queensland.

Victoria

The first tribunal to hear the matter is VCAT (Victoria Civil and Administravie Claims Tribunal) which hears claims in relation to the supply of goods and services, between a consumer and a trader, or between a business and an individual. Matters are heard as either a ‘fair trading dispute’ or a ’small claim’ (under the Fair Trading Act 1999).

Western Australia

In Western Australia, initially a claim is brought to the Magistrates Court if the debt is of a value of up to $75,000. This court also deals with consumer and trader claims over the sale, supply or hire of goods or services up to $50,000.

So if you are owed money then you need to the take steps to recover your money. We offer a generic letter of demand which you can purchase by clicking below. Also, we have legal experts available online now to advise you on what to do next if you have exhausted all of the options in terms of making phone calls and writing letters up to the point of issuing a final letter of demand. You certainly need legal advice if you have reached the stage of having to issue legal proceedings because the debtor simply will not listen up until this point.

Debt Collection Letter Resources