Debt    

Debts are a very common legal problem that most people experience at some stage in their life. This top​ic explains what you can do if you are owed money, or if someone is chasing you for money.​

What's a debt?

Debts can arise in lots of different ways. In this section you will find information about:

• ​Contracts
• Gifts and private loans
• Loans and credit cards
• Electricity, gas, water and phone bills.

For more information, see What's a debt?

Making a claim

If someone owes you money, you can make a claim asking them to repay the money to you. You can​ phone them, send them an email or sms, or write them a letter. A common way to make a claim for money owed is to send a letter of demand.

For more information, see Making a claim.

Responding to a claim​

If someone is chasing you for money, they may send you a letter of demand, or they might phone you, or send you an email or sms. There are different ways that you can respond to their claim, including writing a response to their letter of demand.

For more information, see Responding to a claim.

Resolving your dispute

If you have a dispute with someone about a debt, it is really important to try to resolve that dispute without going to court. Talk to the other person, negotiate with them, or try mediation.

For more information, see Resolving your dispute​.

Going to court

If you can't resolve your dispute, you may end up in court. If you are owed money, you will need to decide whether to start a case. If someone is chasing you for money and they start a case against you, you will need to decide how to respond to the court case. However, it is a good idea to try to avoid going to court by settling your dispute, if possible. 

For more information, see Going to court.

Flowcharts

If you want a visual overview of how to make or respond to a claim about a debt, see Flowcharts.​

Frequently Asked ​​Questions

This section has answers to common questions that you may have about debts – when someone owes you money, or someone is chasing you for money. This is a good starting point if you're not sure where to begin your search for information.

For more information, see Frequently Asked Questions. 

COVID-19 Update

If you need to file documents with the Court, Tribunal or Commission, you should contact them directly to see what options are available to you. You may be required to file the documents online, by post or in-person. 

If you need to appear at the Court, Tribunal or Commission, you should contact them directly to see what options are available to you. You may be required to appear in person, by phone or Audio Visual Link (AVL).

For more information, see COVID-19 (coronavirus) on the New South Wales Local Court website.