Small Claims Division of Debt Recovery

Small Claims Division of Debt Recovery

The Local Court’s Small Claims Division was created to hear and rule over cases regarding small debt recovery. They also deal with claims for damages or demands. A small claim is considered anything of $10,000 or less. The goal of this division is to hold jurisdiction for quick, inexpensive, informal legal proceedings. Another important factor is that the normal rules of evidence are not applicable.

The Small Claims Division was originally made so that people could initiate small claims, without the need for legal representation. This is useful for those who would otherwise be unable to afford to make legal claims. However, it also means that the division is limited with how much they can award. The amounts must be in scale to the claims, and remain “small”.

Once the defendant has been served with a statement of claim, they can file a notice indicating that they intend to defend against the claim. The case is then scheduled for a pre-trial review, which will take place in front of a registrar. Both parties must try to come to terms at this pre-trial, without needing to take the matter further. If they can’t come to an agreement, a small claims hearing is organised.  Contact competent Debt Recovery Lawyers

At a small claims hearing, all evidence must be given in the form of written statements or documents. There is no giving of oral evidence in this type of hearing. Evidence must also be filed around a month before the hearing takes place. Without the need for a more traditional court hearing, people can make claims without having to hire lawyers or defend themselves formally.