If you don’t think you owe the
money, or if you’re unsure, you should contact your solicitor as soon as
possible so that they can dispute the debt and try to prevent court proceedings
from starting.
Even if you do owe the money,
your solicitor can help. For example, they may be able to negotiate with the
creditor to come to some kind of arrangement, such as paying by instalments. At
the end of the day, in most cases, they just want their money re-paid.
If the claim against you ends up
in court and you lose, you could be liable for interest as well as the legal
costs your creditor spends recovering the money from you. So where possible and
appropriate it is worthwhile trying to negotiate before it goes to court.
What
happens if it goes to Court?
To start court proceedings a
solicitor needs to file a Statement of Claim. If someone serves you with one of
these, you should never ignore it. If you do, the creditor can apply
to the court for a default judgment against you.
You usually have 28 days to take
action after someone serves a Statement of Claim on you, so you need to move quickly
and without unnecessary delay. The good news is that it’s still
not too late to pay your debt.
You can admit you owe the money and
apply to the court to pay by instalment. But if your creditor doesn’t agree to
the terms you’ve proposed, the claim will end up in court.
If you don’t owe the money, you
can defend the claim. Your solicitor can lodge a defence on your behalf, which
sets out your reasons for disputing the debt.
You may also choose to lodge a counter-claim
against the creditor, for instance if the work wasn’t performed or if you
received defective goods.
M: 0481 287 528
E: info@gandblawyers.com.au
W: www.gandblawyers.com.au
GPO Box 1849, Sydney,
NSW 2001
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