Application process - debt disputes
Before you make an application
Please ensure you have read the debt dispute page which outlines the steps required prior to making an application to QCAT.
The Application checklist - minor debt (PDF, 49.1 KB) can assist to identify the correct application form and procedures for your application.
Making an application
To make an application in relation to a debt dispute complete and lodge Form 3 - Application for minor civil dispute - minor debt (PDF, 478.8 KB).
When lodging a debt dispute you can make a claim against the other person who lives interstate if the debt occurred in Queensland.
If your claim is against a trader or company, it is very important that their correct business details including their full name and address are completed on the application form. This ensures you take action against the right organisation. Contact the Office of Fair Trading for business name information or the Australian Securities and Investment Commission (ASIC) for company information. A search fee may be charged.
What happens next?
Once your application and forms have been received QCAT will review the information you provided and return to you copies of your application and forms which have been stamped with the QCAT seal (official stamp).
You must then personally deliver (serve) a copy of the stamped documents to the other party. You may use the services of a Magistrates Court bailiff, commercial agent or process server to serve the documents on your behalf. You can find their contact details in the phone book.
For more information on the service of documents, please read the QCAT Practice Direction No 8 of 2009 - Service of documents (PDF, 116.5 KB).
Responding to the application
On being served the stamped documents, the other party may file a response to the original application. You can do this by completing and lodging Form 7 - Response to minor civil dispute – minor debt (PDF, 415.8 KB).
In a response, the other party outlines facts which try to disprove the original claims. For example, you stated that "the contract is a written document dated 1 July 2008", the other party may say "I deny that the contract was a written document dated 1 July 2008 because the copy of the contract is signed and dated 1 July 2007".
The other party has 28 clear days to file a response from the time they are served. It is up to the other party to send you a copy of the sealed response after it is lodged at QCAT.
All parties will then receive a notice to attend mediation including the date, time and location of mediation. The aim of mediation is to get all parties to reach an agreement.
If no agreement is reached at mediation, generally the matter will proceed to a hearing and a final decision will be made.
Please note: If your application concerns an amount up to $3000, your dispute will be listed for hearing without first being referred for mediation, unless otherwise ordered by the tribunal. For more information see QCAT Practice Direction No 4 of 2011 - Arrangements for the mediation and determination of minor civil disputes (PDF, 58.3 KB).
When no response is received - default decisions
If the other party fails to lodge a response within 28 days of being served with the application, or they do not resolve the dispute to your satisfaction, QCAT can proceed with the application. You can apply to QCAT to make a decision by default by completing and lodging Form 6 - Request for decision by default – minor civil dispute – minor debt (PDF, 373.5 KB) which must be accompanied by a completed Affidavit in support of a request for a decision by default (PDF, 303.1 KB)
A decision about your case will be made from the paperwork received and you will not be required to attend mediation.
If a default decision is made, the other party may apply to have the decision set aside by sending a request in writing to the tribunal containing the following information:
- their name
- the file number
- when the default decision was made
- details as to why they wish the decision to be set aside.
Once this information has been received the matter will be reviewed by the tribunal. All parties will then be advised of the outcome.
Interest on a debt
As part of its final decision QCAT may order a party to pay the other party interest on the debt. If interest is ordered, it will be:
- at the interest rate agreed upon in the original contract, or
- at a rate the tribunal considers appropriate. Practice Direction 5 - Interest on decision by default for certain minor civil disputes (PDF, 101.1 KB) has set this rate as 10%.
Any claim for interest must be included in the application to QCAT.