Need to recover up to $25k? Here’s how to do it in Qld

September 15, 2022

Are you or your business owed money but don’t know what steps to take to recover those funds through the Courts?

Whether someone owes you $300 for a haircut or $10,000 for landscaping, so long as the amount is under $25,000 you can make your own minor debt claim with the Queensland Civil and Administrative Tribunal (QCAT).

Applying to QCAT may seem like a daunting process but once you understand the steps to apply it becomes a much simpler process.

Step 1: the application form

The application can be made online on the QCAT website where there is a questionnaire for you to fill out.  You can complete the form online here. Alternatively, a form can be downloaded for you to print and file a physical application with your local Magistrates Court. You can download the form here.

The online form will ask where you would like to have the application heard, this will likely be the Magistrates Court nearest to you. This step is unnecessary with the physical application as the Magistrates Court in which you file your application is where that application will be heard.

Step 2: calculate the total amount owed to you

Both applications will ask:

1. what the amount owed is;
2. when the amount became owing (usually 30 days after the issue of the invoice); and
3. whether you would like to charge interest on the amount owing.

Interest will either be calculated on:

• a previously agreed amount, for example the amount referred to in any terms and conditions; or
• the default reserve bank amount, with interest calculated from when the amount became owing up to when the application is filed. QCAT has a calculator here that can work this out for you.

Additional to the cost and interest owed you can claim other expenses that are required to file and serve the application. These expenses include the filing fee to lodge the application with the court, this amount will change depending on the amount of the claim. You can find a list of these fees here. A service fee can also be claimed if you employ a process server to serve the application on the respondent, it is a good idea to get some quotes so you have an idea of the amount to claim.

Step 3: outline why the money is owed to you

Next you must set out:

• the basis of your claim;
• the details of any written or verbal agreement between you and the other party which gave rise to the debt;
• quotes provided to the other party for work;
• invoices of work completed; and
• any other such documents or agreements that help show the court that there was an agreement made.

If you have the documents with you they can be attached to the application, with a brief description, to strengthen your position. You should always attach any agreements, invoice and quotes to your application.

Step 4: make sure you include the correct address and contact details for you and the debtor

You must fill out who you are, or the business you are making the application on behalf of, with your contact details. This is so the court can contact you if the person or business you are bringing the claim against files their response. If there are multiple people making the application, you will fill out the details for each applicant.

Then you must fill out who you are bringing the claim against. The contact details and address of the person you are bringing the claim against needs to be somewhere that you can serve the documents successfully.

Step 5: lodge your application with QCAT

Once the application has been completed it can be lodged with QCAT which includes paying a filing fee.

If you file online you will need to print a copy to serve on each of the respondents. You should also save a copy for yourself.

When lodging the application physically with the court ensure you have at least 3 copies printed off, one for the Court to keep, one for you and one for each of the respondents you are bringing the claim against. The court will then provide you with your sealed copy and a sealed copy for each of the respondents.

Step 6: serving the application on the debtor

These sealed copies for the respondent must then be served.

This process is to officially inform whoever you are bringing the claim against that a court application has been brought against them. Service must be completed before 90 days after the date of filing, service can be enacted by you or another person you hire to serve on your behalf.

After service the respondent then has 28 days to file their response.

Step 7: hearing or default judgement

If the respondent does not file a response after the 28 days, you can apply for default judgement. You can download to apply for default judgment the form here. This will be done by QCAT without the need for you to personally appear at a QCAT hearing. You will then receive the final orders within 28 days.

If the respondent does file a response, depending on the amount of the claim, you will be given notice to attend a mediation or a trial. The mediation process aims to reach a solution between you and the respondent without the matter needing to go to trial. If an agreement can’t be reached between you and the respondent, the process will proceed to trial. QCAT has set out how to prepare yourself and what to bring to a Mediation here or a Trial here.

While it may seem like there are a lot of steps needed to make a claim with QCAT it can become a simple process so long as you have all the information you need. QCAT was designed for individuals to make claims without requiring a lawyer to appear on their behalf in that Tribunal so if you are owed up to $25,000 it is well worth considering.

If you would like assistance, please contact a member of our Business Services Team.