Debt Disputes

Our commercial litigation lawyers focus on commercial & debt disputes, enforcement of money orders, and insolvency.  We are serious about recovering your debts.

• Do you have a debt that needs to be recovered?
• Do you have a debtor who just will not pay?

Your only option in a debt dispute may be to enforce your legal rights with legal action, either in Court or with a statutory demand.

Your debt can be recovered legally by:

1. Sending the debtor an official letter of demand foreshadowing legal action;
2. Starting proceedings in the Court with jurisdiction;
3. Filing and serving a claim and statement of claim;
4. Getting judgment; then
5. Enforcement of that judgment in the Court; or
6. Enforce the judgment with a statutory demand or bankruptcy notice;
7. Bankrupt the debtor in the Federal Circuit Court or wind them up in the Federal Court.

Give yourself the best chance of success and engage a professional dedicated debt dispute solicitor

DEDICATED FOCUS – FAST RECOVERY – PROVEN RESULTS – FIXED FEE SERVICES

Debt Disputes in Queensland

Different Courts in Queensland have different monetary jurisdictions:

1. QCAT – small claims of up to $25,000.00
2. Magistrates Court – claims up to $150,000.00
3. District Court – claims up to $750,000.00
4. Supreme Court – claims over $750,000.00

Filing and Serving a Claim and Statement of Claim

Once you have identified the debtor in debt dispute proceedings, and the jurisdiction you can start a proceeding.  A proceeding for debt recovery is started by claim and statement of claim.

These pleadings must clearly identify the material facts that you intend to rely on at trial.  It is vitally important that you get this done by a suitably qualified professional.

After your claim and statement of claim has been drafted, you must file the document in the Court.  During the filing process, the Court will give you a copy with the Court seal.  This is called a “sealed copy”.

Once you have a sealed copy you will need to serve your sealed document on the debtor in the debt dispute proceedings.

There are very strict requirements in relation to service of documents.  You must get this done by a professional.

A notice of intention to defend and a defence is filed within twenty eight (28) days from the day the documents are deemed served on the debtor.  Failure to do so may allow a plaintiff to apply for default judgment.

Getting Default Judgment

An application for default judgment is an application asking the Court to give you judgment.  A judgment is a court order compelling the defendant to pay your debt.

It is very important that you are able to prove service, and include all of the information required in the affidavit supporting the request for default judgment.

Enforcement of Judgment

After you receive default judgment you are then able to start enforcement proceedings including:

1. Enforcement warrants – sale of property, redirection of wages etc.
2. Bankruptcy – if the debtor is a person;
3. Statutory Demand – If the debtor is a company;
4. Winding-up – apply to wind up the company in liquidation.

Debt disputes in Queensland can be very complicated.  It is very important that you seek professional legal help.

We have a lot more information on out Enforcing a Judgment page – however, the basic’s of enforcing a judgment are outlined below.

Enforcement Warrants – Debt Disputes

There are a number of different enforcement warrants that you can use to make a debtor pay the debt.  These are outlined from rule 817 to about rule 888 of the Uniform Civil Procedure Rules 1999 (QLD).

Enforcement hearing warrants include:

1. Enforcement warrants for seizure and sale of property
2. Enforcement warrants for redirection of debts
3. Regular redirections from financial institutions
4. Enforcement warrants for redirection of earnings
5. Order for payment of order debt by instalments
6. Enforcement warrants for charging orders

Bankruptcy – Debt Disputes

After you are given judgment against a person, you are able to force that debtor into bankruptcy.  The procedure for bankruptcy is:

1. Apply to the Australian Financial Security Authority (AFSA) for a bankruptcy notice;
2. Serve the bankruptcy notice and the judgment to the debtor;
3. The debtor has 21 days to follow the instructions on the bankruptcy notice or apply to set it aside;
4. If the debtor does not comply with the bankruptcy notice, they have committed an act of bankruptcy;
5. The act of bankruptcy allows you to apply to the Federal Circuit Court for a sequestration order.

The debtor will have most of their possessions seized and sold to satisfy the debt.

Winding Up Application

After you are given judgment against a company then you can enforce that judgment by applying to the Court for an order that the company be wound up in insolvency.  The procedure for winding up is usually:

1. Serve the debtor with a statutory demand and a copy of the judgment;
2. The debtor company will have 21 days to pay the money or attempt to set aside the default judgment;
3. If the debtor does not do these things, then they are presumed to be insolvent;
4. Based upon that legal presumption, you are able to apply to the Court for an order winding up the company in liquidation.

The debtor company will be wound up, the assets sold, and the proceeds of the liquidation will be used to satisfy the debt to you (and other creditors of the company).

Why use a Debt Disputes Lawyer

It is very important that you us a professional debt disputes lawyer to navigate the procedural issues involved.  Failure to adhere to the rules or making claims without a cause of action may allow the other side to make an application for costs against you.

The best chance you have in recovering your unpaid debts is to contact us and let us recover your debts.

Give yourself the best chance of success and engage a professional dedicated debt disputes solicitor

DEDICATED FOCUS – COMMERCIALLY MINDED – PROVEN RESULTS – FIXED FEE SERVICES