Statement of Claim: When Do I Use the Court to Get My Debt Paid?

A statement of claim is a legal form that is filed with the courts to commence a formal legal action against your debtor who is refusing to pay you. It is only done after you have sent at least one letter of demand to the debtor and received no action or result. QBF scheme

The court wants to ensure you have tried to settle your debt issues outside of the court process and that coming to court is a last resort. The court will require evidence of your attempt to settle your debt in form of a letter of demand. You will need to be able to show it was received and not actioned by the debtor.

A statement of claim is filed after you have tried to request and negotiate payment from the debtor and all options have failed. The claim form can be obtained from the website of your local court. In this form, information regarding your debtor will be required such as name, career opportunities address, ACN if it is a business, and evidence of both debt and refusal to pay after notification. You do not need a lawyer to fill this out for you. It can be done on your own and a filing fee will be payable to lodge it with your local court.

You can serve the statement of claim yourself by doing this in person or alternatively by having a process server do so. A third option available is by paying a fee to the court to send it by post. You cannot properly serve a statement of claim by sending it yourself in the mail, even if you send it by registered post. It is only a small fee to have the court post the statement of claim for you and they keep the record of posting for their files. It is important to note that however you decide to deliver it, you must do so within 6 months of filing your claim. You should not delay in sending it and should do so as early as possible in the event that there are difficulties in contacting the debtor.

After you have filed and served the statement of claim, the debtor may still contact you to settle the debt to avoid going to court. Alternatively, fivem host a debtor can respond directly to the court by filing a defense, or an acknowledgment of the debt, an acknowledgment of a liquidated claim (where the debtor pays in installments), or they may pay the claim. They may also still choose not to do anything.

There is a time limit for the debtor to file a response with the court. They have 28 days from the date they were served the claim to respond otherwise the court will file an automatic judgment in favour of the person claiming the debt.

In many cases receiving a statement of claim will be enough to prompt a debtor to settle or to enter an acknowledgment with the court that they owe the debt. If the debtor contacts you personally and agrees to pay, you should ask the debtor to file the acknowledgement of the payment formally with the court. By doing this, the court will enforce payment if the debtor still does not pay. You should always ensure everything follows the formal process to protect your claim.


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