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A Statement of Liquidated Claim is an official court document arranged by someone who thinks they are owed some money. They take the document into the local court to get it filed and stamped and this begins the court proceedings. They must then give a copy of the Statement of Liquidated Claim to the person who they say owes them the money. This is called service.
If you receive a Statement of Liquidated Claim you must act quickly if you want to defend the claim. You only have 28 days to submit a defence or you risk having the matter decided without you. If this happens, the person who brought the Statement of Liquidated Claim can seek a default judgment against you. This means that the case will be heard in Court without you being there and the Court can order that you owe the money that the other person is claiming. You should never ignore a Statement of Liquidated Claim and should always make sure you get legal advice straight away. A lawyer or a Chamber Magistrate can help you write your defence.
Yes, the person wanting to serve the document has to try their best to get the document to you, but if they cannot, they can apply to the court for 'substituted service'. This means they might be allowed to try to bring the document to your attention in some other way. For example, they might be allowed to deliver it to someone who you have regular contact with, such as other family members. However, if a default judgment is made and you did not receive a Statement of Claim, you should make sure you find out whether there was one really served. You will probably need a solicitor to make enquiries for you.
There are numerous ways you can respond to a claim:
Each of these possible responses is considered in more detail below.
Note: In deciding whether you owe the money, be aware that there are time limitations which apply to creditors seeking to recover debts. If it is more than six years since the debt fell due, you may have a defence that the claim is out of time. See factsheet "limitations" for more information (insert hyperlink)
There is a form that you can get from the local court called "Notice of Grounds of Defence". On this form you clearly write the reasons why you do not owe the money and then submit your defence to the court for filing and stamping. You will also have to arrange for a copy of your defence to be served on the person bringing the claim. The chamber magistrate or a solicitor can help you with your defence.
You will probably get a default judgment made against you. This means that you have lost the case. Most of the time you will then have to pay the money that the court has ordered you to pay. The money can be claimed from you anytime within 12 years of the date of the judgment. It is very difficult to avoid a default judgment. It is possible to apply to the court to have it set aside, but if there is no good reason why you did not submit a defence when you had the chance, you might have more costs to pay as well as the amount of the judgment. If you defend the claim but you are still ordered to pay the money, you can apply to pay by instalments. You can do this by asking the Magistrate at Court on the day to make an order that you pay by instalments. You will have to show the Court why you are unable to pay in full. The Magistrate can make this order even if the person you owe the money to does not agree.
You should claim the money from them as part of your defence. This is called a cross-claim and you will need to have filled in the proper form and submitted it to the court for filing and stamping within 28 days of the Statement of Claim being served on you. You should file the cross-claim at the same time as you file your Notice of Grounds of Defence. You will then need to arrange for a copy of the cross-claim to be served on the person claiming against you. Again, you can get the form from the registry of the Local Court and the Chamber Magistrate or a solicitor can help you with it.
Yes. If you can sort the matter out with the person making the claim before it goes to court, it will be cheaper. If the matter goes to court and you lose, you risk having to pay the other side's costs. Also, by negotiating the matter before it goes to court, you might also be able to work out a payment system that is easier for you, such as payment by instalments. Even if you agree that you owe the money but don't agree on the amount, you can try to negotiate the matter before it goes to court. If you make an agreement with the person making the claim, you will need to submit an "agreement as to judgment" form in the court, which tells the court that there is no need to have the matter heard by a magistrate. Both of you need to sign this.
You will need to file a Notice of Grounds of Defence or a Statement of Confession to part of the debt. If you file a defence you should deny the part of the debt that you do not owe and admit to the part that you do owe. Make sure you make it very clear and it is helpful to use the terms 'admit' and 'deny' to avoid confusion. Remember that if you admit to part of the debt, you will have to arrange payment (such as by instalments at the end of the court process).
It is best if you can get a solicitor to represent you. Sometimes Legal Centres or Legal Aid can provide a solicitor for you. If you don't want, or cannot afford a solicitor, you can defend yourself. Legal Centres can also offer you information and advice about defending yourself and the Chamber Magistrate can give you information about the process you will go through on the day. Refer to our factsheet called How do I defend myself in the Local Court?.
A judgment debt means that the Court has ordered that you owe the money to the Plaintiff (the person who sued you). There are a number of ways a judgment debt can be enforced. You might have to pay in full, or by instalments, or the money could be taken from your bank account or wages. Sometimes your furniture or other goods can be taken and sold under an order called a 'Writ of Execution'. For more information, see the fact sheet called What happens when I have a Judgment Debt to pay.
Produced by Redfern Legal Centre.
This factsheet is no substitute for legal advice. If you have a problem
please seek legal advice from your local community legal centre
Last updated January 2006