Using the Legal System to collect debts in Queensland

This is the third article in a series where we will go through using the Legal System to Collect Debts in all States and Territories. Previously we have compared specific legal actions between states and territories.

Included in this is a workflow to assist in the understanding of the process. The workflow is located after the article. You may also like to download a copy of this workflow for you own records. A link for the download is at the end of this article.

Statement of Claim

After expiry of default notice the initiating action in the Magistrates Court is a Statement of Claim (also referred to as a SoC).

• Must be served personally

• Can apply for Judgment 28 days after service

*Costs from between $368 to $1,318, depending on amount & cost of service (can be higher)

This can be compared against the other states and territories here.

 

Judgment

This can be compared against the other states and territories here.


Once Judgment granted then 4 choices of enforcement proceeding are possible.

Enforcement Hearing Summons

• This is used where you are unaware of Debtors Assets, Employment.

• Documents are personally served on the debtor to attend court.

• Hearing is conducted by the Registrar and debtor must provide details of income expenses and assets.

• If debtor doesn’t attend then you can apply for an Enforcement Hearing Warrant.

This can be compared against the other states and territories here.

*Cost is between $444 & $814 depending on the amount of debt owed as a minimum - solicitors may charge more than scale increasing the cost. For undefended matters.

Redirection of Earnings / Debt.

• Two types - for Debts or for Salary / Wages

• Must conduct an enforcement hearing first
  

• Must know the financial institution details or employers details

• Documents are served on the financial institution or employer

• Redirection of Debt - Financial institution advises of amount garnished (if any). There are protected monies (Centrelink Benefits) that you may not received. This is a one off payment unlike a Redirection of earnings.
  

• Redirection of Earnings: The court will issue this warrant after considering if:

1. the debtor is employed, and the employer’s identity and address
2. the debtor earns a sufficient amount to pay the warrant on top of living expenses and other liabilities
3. the amount to be redirected imposes unreasonable hardship.

*Cost is between $146 & $346 depending on the amount of debt owed as a minimum - solicitors may charge more than scale increasing the cost. For undefended matters.

This can be compared against the other states and territories here.

Enforcement Warrant - Seizure and Sale

• Bailiff attends property of debtor to demand payment and tag any assets of value.

• If payment cannot be made goods to the value of the debt are seized and sold.

*Cost is $202.00 - $402 depending on amount of Claim (undefended). Increases where Bailiff required to travel more than 12km from registry.

This can be compared against the other states and territories here
 

Bankruptcy

• Judgment must be obtained then a bankruptcy notice served.

• Once Bankruptcy notice has expired then Bankruptcy can be applied.

• Once bankruptcy obtained all debts owed by the debtor are captured under the Bankruptcy.

*Cost is a minimum of $2500.00 if matter is undefended (after Judgment costs)

* Important Note: All costs are estimates as at 20/05/2011 and do not include costs of counsel and preparation for hearing.

Workflow of using the Legal System in Queensland to recover your debts

Download of this workflow;

Workflow of the QLD Legal System to collect debts (37 KB)