Reading time: 3 minutes

Are you owed money from goods or services that you provided in Tasmania? If so, you can enforce payment and recover the money. For amounts less than $5,000, the debt recovery process is relatively straightforward. This article will outline what steps you will need to follow.

Step 1: Send a Letter of Demand

You should first send the debtor, the person owing you money, first and second reminder letters. This may assist you in preserving your business relationship. If, however, you still cannot recover the money owed, you will more than likely send a Letter of Demand to the debtor outlining details of the debt including on what basis the money is owed and the amount outstanding;

  • A date by which the debtor must pay; and
  • A warning that if the debtor does not pay the money within the specified time, you will commence legal proceedings to recover the debt. 

Upon receiving the Letter of Demand, the Defendant may either:  

  • Pay the money and settle the matter, 
  • Dispute the matter, or
  • Ignore the letter.

Step 2: File a Minor Claim Form

If the matter is still unsettled after you have sent a Letter of Demand, you can commence legal proceedings to recover the money. You will need to fill in a minor claim form, and lodge it at the closest Registry along with three copies of the claim and the original.

Step 3: Serve the Defendant

You will then ‘serve’ the Defendant by providing them with a copy of the claim by:

  • Personally delivering the claim to the Defendant,
  • Arranging for a process server to deliver the claim, or
  • The Court can arrange for service on your behalf.

Step 4: Wait for the Defendant’s Response

Within 21 days following service, the Defendant will need to consider how to respond by either paying the amount and settling the matter or filing a defence.

If the Defendant files a defence, you will receive a copy and the Court will set a date for a directions hearing. However, if the Defendant fails to respond to the claim, you can apply for a default judgment in your favour.

Step 5: Settling the Matter Before the Hearing

If you settle the matter before the hearing, you must notify the Registrar in writing that you wish to withdraw your claim. You could also apply to the Court to make a Consent Order to enforce the terms of your settlement. 

Step 6: Attend the Directions Hearing

The directions hearing takes place before a final hearing. At the directions hearing, the Magistrate will ask both parties questions about the situation and try to facilitate a settlement. If no settlement is reached, then the Magistrate will set a date for a hearing or mediation.

Step 7: Attend the Hearing

The Magistrate will then give both parties an opportunity to present their case and supporting evidence. Once you and the debtor (defendant) present your arguments, the Magistrate will decide the case. 

Conclusion

LegalVision has a team of great litigation and dispute resolution lawyers who can assist you. Should you have any questions about debt recovery or how you can enforce a payment in Tasmania, please get in touch with us 1300 544 755. 

Webinars

Construction Contract Essentials

Thursday 12 August | 11:00 - 11:45am

Online
Understand how construction contracts are drafted and how to protect your construction business.
Register Now

Startup 101: Understanding Cap Tables and ESOPs

Thursday 19 August | 11:00 - 11:45am

Online
Cap tables and employee share option plans are essential for fast-growing startups. Learn more with this free webinar.
Register Now

Expanding to NZ: Structuring Your Business For Success

Thursday 26 August | 2:00 - 2:45pm

Online
Launching a business in New Zealand? Understand how to structure your business for success with this free webinar.
Register Now

Preventing Modern Slavery: Your Business’ Legal Obligations

Thursday 9 September | 11:00 - 11:45am

Online
Are you an Australian business with $100m+ annual consolidated revenue? Learn how to determine if you are a modern slavery reporting entity and your obligations under the legislation with this free webinar.
Register Now

About LegalVision: LegalVision is a tech-driven, full-service commercial law firm that uses technology to deliver a faster, better quality and more cost-effective client experience.

The majority of our clients are LVConnect members. By becoming a member, you can stay ahead of legal issues while staying on top of costs. From just $119 per week, get all your contracts sorted, trade marks registered and questions answered by experienced business lawyers.

Learn more about LVConnect

Need Legal Help? Get a Free Fixed-Fee Quote

If you would like to receive a free fixed-fee quote or get in touch with our team, fill out the form below.

  • 2020 Excellence in Technology & Innovation – Finalist – Australasian Law Awards 2020 Excellence in Technology & Innovation Finalist – Australasian Law Awards
  • 2020 Employer of Choice – Winner – Australasian Lawyer 2020 Employer of Choice Winner – Australasian Lawyer
  • 2021 Fastest Growing Law Firm - Financial Times APAC 500 2021 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review 2020 AFR Fast 100 List - Australian Financial Review
  • 2021 Law Firm of the Year - Australasian Law Awards 2021 Law Firm of the Year - Australasian Law Awards
  • Most Innovative Law Firm - 2019 Australasian Lawyer 2019 Most Innovative Firm - Australasian Lawyer