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Debt for creditors 

Laws affecting this topic have recently changed

Legal Aid Queensland is working to review information about how new laws may affect you.

If you need to know more, contact the organisations listed at the bottom of this page.

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Legal Information

What is a debtor?

If someone owes you money then they have a debt to you - you are a creditor and the person who owes you money is a debtor.

Someone owes me money and they won't repay it. What can I do to make them pay?

The Queensland Civil and Administrative Tribunal has information about handling debt disputes, including information on what steps you can take on your own to recover your money.

If your dispute is with another person, a business or a company and is for a fixed sum of money less than $25,000, you may be able to apply to QCAT to have the matter resolved.

If the amount owed to you is more than $25,000 you can start court proceedings.

Court application procedures

Queensland Courts provide information for people representing themselves in court applications about money disputes, including money disputes up to $150,000, and information about how to lodge your claim, defend your claim, and how to get your money after the court makes a judgement.

It is always a good idea to talk to a lawyer for legal advice before you file documents to try to make sure you don't file the wrong type of document or that you don't file documents against the wrong person.

I lent my friend money but they didn't pay so I took them to court. Now I've got a money order against them but I still don't have the money. What can I do now?

There are several things you can do to try to enforce a Queensland Civil and Administrative Tribunal (QCAT) decision or court order to get your money. For all of them you need to apply to the court.

The Queensland Civil and Administrative Tribunal has information on how to enforce a QCAT decision, including how to enforce a minor civil dispute decision.

The Queensland courts also provide information on getting your money after judgement.

One thing you can't do is have the debtor sent to jail for not paying you.

Someone owes me money but they say that if I sue they'll just go bankrupt/apply to pay me $5 a week until the debt is paid. Can they do this?

Yes. A debtor can go bankrupt and can apply to the court to pay you an amount each week, but it probably won't be as little as $5.

The Insolvency and Trustee Service of Australia provides information on how to go bankrupt, how to make a person bankrupt, and what sorts of debts are covered by a bankruptcy.

Anyone can apply to go bankrupt. Lots of people don't want to do this, because although they can get rid of their debts, there are other consequences they may not like.

If the debtor can't afford to pay you back all the money in one go, the debtor can ask the court to order payment by instalments over time. The debtor has to give the court his/her financial position, and the court looks at this to be satisfied that the repayment proposal is reasonable. If the court orders payments by instalments, then you can't take other action to get the debt paid.

I got a money order against someone five years ago but they didn't own anything so I didn't see the point in going further. Now I've found out they've got some money or property. Is it too late to do anything?

No, it isn't. You have six years (extendable up to twelve years) to enforce an order of a court or of the Queensland Civil and Administrative Tribunal (QCAT).

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Do I need legal advice?

You may need legal advice if you

  • are considering applying to QCAT or court to resolve a debt dispute
  • have an order from QCAT or the court that someone owes you money, but they still won't pay.
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Where can I get legal advice

Legal Aid Queensland may provide legal advice about recovering personal debts. We cannot give advice to businesses, or give advice about recovering debts on behalf of a business or company.

The following organisations may be able to give legal advice on your matter.

Community legal centres give legal information and advice on a range of topics. Contact them to see if they can help with your matter.

Queensland Law Society can refer you to a specialist private solicitor for advice or representation on personal or business matters.

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Who else can help?

These organisations may also be able to assist with your matter. They do not provide legal advice.

Australian Competition and Consumer Commission (ACCC)

The ACCC has information about

The ACCC and ASIC have produced a new publication about your rights and responsibilities when you owe a debt, called Dealing with Debt

ASIC's MoneySmart

The Australian Securities and Investments Commission have powers to protect consumers against misleading or deceptive and unconscionable conduct affecting all financial products and services, including credit.

The MoneySmart website is maintained by ASIC to provide independent guidance for consumers making decisions about their personal finances. They provide information about

MoneySmart can also offer helpful information about important life events, including

  • Buying a mobile
  • Starting work
  • Buying a car
  • Buying a home
  • Having a baby
  • Losing your job
  • Divorce or separation
  • Losing your partner

CHOICE Online

Choice is a consumer advocacy group which campaigns to protect and assist consumers through changes to laws and industry practices. Choice publishes regular articles relating to Consumer Protection, Money, and other consumer related issues.

Insolvency and Trustee Service of Australia (ITSA)

ITSA provides information about bankruptcy, including how to become bankrupt, making a person bankrupt, what debts are covered, consequences of bankruptcy and more.

Office of Fair Trading (Department of Employment, Economic Development and Innovation)

The role of the Office of Fair Trading (OFT) is to ensure the marketplace remains fair and safe for both consumers and business. OFT can help with the following matters:

Queensland Civil and Administrative Tribunal (QCAT)

QCAT can hear debt disputes, consumer and trader disputesand other minor civil disputes, if the amount is under $25,000. You should try to resolve your dispute with the other party before asking QCAT to hear your dispute. 

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Disclaimer — Copyright 1997 Legal Aid Queensland. This content is provided as an information source only and is not legal advice. If you have a legal problem, you should seek legal advice from a lawyer. Legal Aid Queensland believes the information is accurate as at 1 December 2009 but accepts no responsibility for any errors or omissions and denies all liability for any expenses, losses, damages and costs you might incur due to the information being inaccurate or incomplete in any way.



Last modified: 16 May 2012 10:32AM
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Debt for creditors