Small Debt Collection

Recovering small debts, usually categorized as being smaller than $5,000.00 is a process which is supposed to relatively simple and straight forward. You make calls, nothing happens, you send a letter of demand, nothing happens. You file in the local magistrates court or the local small claims tribunal. The rates of recovery start to go up dramatically at this point. Legal action is very effective method of recovery of debt. It is especially efficient when it is conducted in a tribunal which is designed specifically for this purpose. Many small claims tribunals are specifically designed for the purpose of settling debt claims like this and have efficient systems of administration for this purpose so matters are kept simple, with low levels of documentation and legality. The matters remain simple and legal costs are capped by the rules of the courts. So small claims tribunals are often a very effective method of recovering small debts once letter writing and phone calls have ceased being effective.

Another option is a local magistrates court. This varies between states of Australia. In Victoria there is VCAT, the Victorian Civil Administrative Tribunal which handles most small debt claims. In Queensland, these types of matters are handled by the Queensland Magistrates court. The New South Wales local court system also handles the small claims jurisdiction in most parts of New South Wales. All of these courts and forums are open to the filing of small debts and have relatively well set up administrative systems for handling these types of claims. So if you need to file a small debt claim, you need a lawyer to draft a statement of claim for you. We would definitely recommend that you seek the advice of a lawyer on how to do this and we have lawyers available live online now for this purpose.

Debt Collection Letter Resources