Debt Recovery (Respondent)

Purpose of this Guide: Open this plan when your client has received a QCAT Form 3 Application for a minor civil dispute debt claim against them. Use this plan to conduct a conflict check and execute a retainer, file a timely response, assert available defences (including limitation period, payment made, and dispute as to quantum), and represent the respondent through mediation and, if necessary, a final hearing and any appeal. Time is critical - a response must be filed within 28 days of deemed service or the applicant may seek a decision by default.

Jurisdiction: Queensland, Australia. QCAT has jurisdiction over minor civil disputes involving liquidated debts up to $25,000 (excluding interest and costs) following the increase from $10,000 effected by the Queensland Civil and Administrative Tribunal and Other Legislation Amendment Act 2022. Claims exceeding $25,000 must proceed in the Magistrates Court or District Court.

The Process at a Glance: The process begins with a conflict check and retainer execution before any substantive work commences. The Form 3 Application is then reviewed to assess jurisdiction, deadlines, and defects. A limitation period assessment under the Limitation of Actions Act 1974 (Qld) s 10 (6-year period for simple contract debt) must be completed before any merits defence is formulated, including a review of all written communications for any acknowledgment that may have restarted the clock under s 35. A counterclaim assessment must be completed before Form 7 is drafted to avoid Anshun estoppel risk (Port of Melbourne Authority v Anshun Pty Ltd (1981) 147 CLR 589). A Form 7 Response must be filed and served within 28 days of deemed service of the Form 3 to avoid a default decision under QCAT Rule 69. Once the response is filed, QCAT will notify both parties of a mandatory mediation date. If mediation fails, the matter proceeds to a final hearing at which the respondent presents evidence challenging the applicant's claim. After the decision, the client must be advised on compliance obligations, post-judgment interest (10% per annum), and appeal rights under QCAT Act s 142 (error of law only, strict 28-day deadline).