If you tick all of the following boxes, you are eligible to go to court:
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The Consumer Credit Code must apply to your loan. |
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The amount you borrowed must be less than the hardship threshold (see page 56). |
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You must have a good reason (called 'reasonable cause') for not being able to meet your payments, for example you had a work accident or your hours of employment were reduced. The court will not consider things like buying a new TV or losing your money at the casino as 'reasonable cause' for not meeting your payments. |
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You must be able to afford the payments if the contract is varied. |
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You must show you have tried to negotiate first with the lender (records of phone conversations and your written request to the lender to change your loan). |
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You must show how many times you have defaulted, the amount outstanding (in arrears) and give reasons why you should be given a second chance, in other words, be able to show how you plan to get the loan back on track. |
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You must show there is no other way to bring payments up to date. |
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You must show what is at stake for you if the court does not grant the order. For example, the lender is likely to repossess the car, your area has no public transport and without the car you would be unable to get to work and transport your children to school. |
Which court?
You must apply to the magistrates court nearest to where the contract was entered into. This could mean you have to travel to the court nearest to where you lived when you took out the loan. Remember this only applies to loans taken out in Queensland. If your loan originated in another state, contact the Legal Aid office in that state.
If the lender has already started court proceedings against you in the District or Supreme Court, then in order to temporarily stay those proceedings (put them on hold) you will need to bring your application to that court.
If you're not sure where to lodge your claim, get legal advice to confirm the correct court for your matter.