- Should you use a lawyer or a debt collector in relation to your debtors?
- What court should I commence legal proceedings in (Queensland)?
- What is QCAT?
- money owed for the removal of minor overhanding branches;
- unpaid invoice or account;
- rent arrears, other than arrears of rent for a residential tenancy;
- work done and/or goods supplied with the cost having been agreed beforehand;
- money lent and not repaid;
- dishonoured cheques.
- is arising out of a contract for the supply of goods and/or services, or
- involves the repair of a defect in a motor vehicle, or
- involves damage to property caused by or from the use of a motor vehicle, and
- is valued up to and including $25,000.
It is GLR Law's recommendation that clients use a lawyer if they want to collect "debts" (this could be in relation to business debtors or personal debtors). GLR Law recommends using lawyers as:
1. debt collectors are not generally legally trained and are not usually qualified lawyers. Thus, the advice they can give (and knowledge they have) is limited;
2. debt collectors are expensive, with debt collectors often being more expensive than lawyers;
3. in most courts in Australia you can recover a portion of legal fees paid to lawyers. You cannot recover legal fees from debt collectors;
4. debt collectors cannot generally act for you in court and will need to refer your matter to either their internal legal team or external lawyers.
It is for those reasons that GLR Law recommends that clients use lawyers when trying to recover debts from debtors.
The following is a guide to what court to lodge proceedings in depending on how much the debt is you are owed:
1. If the debt you are owed is less than or equal to $150,000 the Magistrates Court.
2. If the debt you are owed is more than $150,000 and less than (or equal) to $750,00 the District Court;
3. If the debt you are owed is equal to or more than $750,000 than the Supreme Court.
The above is relevant to Queensland only.
QCAT (Queensland Civil and Administrative Tribunal) is an independent tribunal which resolves disputes and makes and reviews decisions about a wide range of issues. QCAT specifically has jurisdiction (i.e power) to hear deb disputes (amongst other matters).
Debt disputes involve disagreements with another person, business or company about a fixed or agreed sum of money, valued up to and including $25,000. Examples of a debt dispute include: