What is the process at a debt collection court hearing?

• You will need to go to court on the date allocated for your debt collection hearing.
• Well before the hearing both parties will need to have filed their written evidence with the court registry. If you have any supporting witnesses then you will need to file their statements as well. If you have a lawyer then they will prepare and file all relevant documents with the court well before the hearing date.
• At the hearing the court will read all the evidence and listen to both the creditor and the debtor. The court may ask you both questions to clarify some of the information you have provided in your statements.
• Generally your evidence will be tested if the amount in dispute is over $10,000. This means you will be cross-examined (asked questions) by the other party’s lawyer.
• The court will then make a decision. If the court makes a judgement debt in favour of the creditor then you will be required to immediately pay the debt and also pay the legal costs which the creditor has spent chasing the debt. There are some cases where you may still be able to arrange to pay the amount in instalments. You should make sure your lawyer raises this with the court so that it can be written in the court orders.
• You must pay the debt within 28 days or you will have to pay interest as well. This time frame may be different in your state or territory and you should check with your lawyer or court staff about the rules that apply to you.