Minor debt disputes ($25,000 or less) often arise in commercial situations. A common scenario is where work or services are performed for an agreed amount and the other party refuses to or cannot pay.
How can I recover the debt?
The first step to take is to try and negotiate with the other party involved. If there is no dispute over the amount or about the work performed, resolving the matter at this stage can be fairly straightforward. Legal costs are reduced, as well as the time involved in recovering the debt.
If you are able to recover the debt at this stage, try to document all negotiations and any agreement you have reached with the other party in writing.
What if that doesn’t work?
If you are unable to resolve the matter with the other party, you may need to take matters further and enforce your rights through legal channels.
Some options may include:
- Sending a letter of demand to the other party requiring payment by a certain deadline
- Making an application to the Queensland Civil and Administrative Tribunal (QCAT)
- Commencing Court proceedings
With all options, it is important to assess commercial viability to avoid legal costs exceeding the amount of the debt. To discuss the costs and timeframes associated with any of the above options, you should seek advice from an experienced legal professional. The most appropriate strategy will depend on the unique circumstances of your matter.
With most legal matters, strict timeframes apply.
To arrange an appointment or to get advice regarding your minor debt dispute, get in touch.
*The legal information in this article is of a general nature only and not intended to be legal advice to rely upon