Legal Project Management Plan & Checklist
Purpose of this Guide: Welcome to the step-by-step practitioner roadmap for recovering liquidated debts in Victoria. Designed for commercial litigation solicitors and debt recovery practitioners, this guide outlines the debt recovery process from initial retainer through enforcement under the Magistrates' Court General Civil Procedure Rules 2020 (VIC). Additional procedural resources can be found on the Victoria Government Portal and the Victoria Legislation Registry.
Jurisdiction: This guide applies to actions in the Magistrates' Court of Victoria (claims up to $100,000), with references to County Court (unlimited jurisdiction, typically >$100,000) and Supreme Court jurisdiction (unlimited, typically >$750,000 or complex). Verify current guidelines on the official Victoria Legislation Registry.
Key Case Law: Refuse to Lose Pty Ltd v Kostakis [2026] VSC 5 (deliberate non-compliance with court orders outweighs existence of arguable defence when setting aside default judgment - significant departure from earlier authorities emphasising CPA 2010 overarching purpose). Thurin v Krongold Constructions [2022] VSCA 226 ( cannot exercise federal judicial power - ACL claims cannot be determined by ).
Governing Legislation: Magistrates' Court Act 1989 (VIC), Magistrates' Court General Civil Procedure Rules 2020 (VIC), Civil Procedure Act 2010 (VIC) ss 16-27 (overarching obligations: duty to cooperate s 20, resolve disputes s 22, narrow issues s 23, proportionality s 24), Judgment Debt Recovery Act 1984 (VIC), Penalty Interest Rates Act 1983 (VIC) s 2 (penalty interest rate: 10% p.a. simple since 1 February 2017), Sheriff Act 2009 (VIC), Limitation of Actions Act 1958 (VIC) s 5(1)(a) (6-year limitation for simple contract debts; s 5(3) 15-year limitation for debts under deed or judgment; ss 24-26 acknowledgment or part-payment RESTARTS the limitation period).
Current Thresholds (2025-26 FY): Penalty interest rate: 10% p.a. Filing fees (Magistrates' Court): $171.50 standard (<$10K), $544.60 ($10K-$50K), $817 ($50K-$100K). Corporate rates double standard. Scale costs on default judgment: $275 (<$500) to $1,519 ($70K+). Statutory demand (companies): $4,000 minimum. Bankruptcy notice (individuals): $10,000 minimum. Sheriff warrant lodgement: $230.50. Additional procedural resources can be found on the Victoria Government Portal and the Victoria Legislation Registry.
The Process at a Glance: Debt recovery involves: • conducting conflict and debtor searches • issuing a formal Letter of Demand • filing and serving a Complaint (Form 5A) • obtaining default judgment (Form 21A) or proceeding to hearing • selecting an enforcement mechanism (Warrant to Seize Property • Garnishee Order • Oral Examination • Instalment Order • or Bankruptcy Notice) • executing enforcement • monitoring recovery. Practitioners should check the official Victoria Government Portal and Victoria Legislation Registry for regular procedure updates.
* Disclaimer: We're nobody's lawyer, because we aren't lawyers. You are, so you know better than to take legal advice from an app. We also aren't accountants or dog trainers - just digital spirit guides taking zero liability for any of this. This site exists to gather the collective knowledge of practitioners like you. Verify everything and submit your feedback on the Debt Recovery (Applicant) matter plan to improve the playbook. THIS IS NOT LEGAL ADVICE, it's a request for input.
This legal matter plan provides a structured workflow for COMMERCIAL_LAW cases, outlining the standard DISPUTE_LITIGATION process. Utilize these tracking templates to manage your legal cases efficiently.
Execute costs agreement, conduct debtor searches, issue formal demand, and verify demand period has lapsed.
Verify all prerequisite documentation has been obtained, cross-reference against the statutory requirements for this matter type, and confirm compliance with practice direction protocols.
Limitation of Actions Act 1958 (VIC):
Prepare the relevant forms and supporting materials required under the applicable legislation, ensuring all mandatory fields are completed and all attachments are properly certified.
Draft and dispatch formal correspondence addressing the procedural requirements at this stage, including any required notices, requests for information, or proposals for resolution.
Penalty interest rate: 10% p.a. under the Penalty Interest Rates Act 1983 (VIC) s 2 (rate in effect since 1 February 2017).
While not strictly mandated by legislation, a letter of demand is standard practice. The Civil Procedure Act 2010 (VIC) imposes overarching obligations (ss 16–27) including: duty to cooperate (s 20), use reasonable endeavours to resolve the dispute (s 22), narrow the issues (s 23), and act proportionately (s 24). Failure to send a demand may attract adverse costs consequences under s 29.
Draft, file, and serve the Magistrates' Court Form 5A Complaint.
Coordinate the collection and review of all financial documentation required for disclosure, including statements, valuations, and supporting schedules as mandated by the rules.
File Form 21A to obtain default judgment after the 21-day response period.
Assess the strategic considerations for interim applications, prepare supporting evidence, and draft the necessary documentation for urgent or time-sensitive relief sought.
VIC Magistrates' Court filing fees (effective 1 January 2026):
Fee waivers available for financial hardship.
Conduct a thorough review of all filed materials to ensure compliance with court requirements, verify service obligations have been met, and prepare for the next procedural milestone.
Verify all prerequisite documentation has been obtained, cross-reference against the statutory requirements for this matter type, and confirm compliance with practice direction protocols.
Refuse to Lose Pty Ltd v Kostakis [2026] VSC 5 - courts will NOT set aside default judgment where the defendant's non-compliance was deliberate and strategic, but conversely, 'snapping on' judgment the moment the deadline passes (when you know the defendant intends to defend) may result in the judgment being set aside with costs against you.
Scale costs on default judgment (as of 1 Jan 2026):