Debt Recovery: Protecting Your Business and Enforcing Your Rights in Queensland

Litigation: 27 November 2025

Author: Aaron Stewart - Our People

Unpaid debts can pose a serious risk to businesses of all sizes. Recovering what is rightfully owed is not just a financial issue, it is essential to maintaining cash flow, protecting your business relationships, and ensuring operational stability.

What is Debt Recovery?

Debt recovery is the process of legally pursuing money owed to your business. This may involve unpaid invoices, loan agreements, or other financial obligations. In Queensland, debt disputes can be handled in several forums depending on the amount:

• QCAT (Queensland Civil and Administrative Tribunal): For smaller claims, typically under $25,000, QCAT provides a streamlined and cost-effective process for resolving disputes. (qcat.qld.gov.au)
• Magistrates Court of Queensland: For claims up to $150,000, the Magistrates Court is the appropriate forum. It provides a formal court process, including filing a statement of claim and, if necessary, pursuing default judgment and enforcement. (courts.qld.gov.au)
• District Court of Queensland: For mid-size claims between $150,000 and $750,000, matters are brought in the District Court. This is the forum illustrated by the case example below. (courts.qld.gov.au)

While obtaining a judgment is an important milestone, it is not the end of the process. Many debtors may resist payment, dispute ownership, or raise technical arguments — making enforcement the critical next step.

Why Proper Documentation and Legal Process Matter

Queensland law requires that debt recovery proceedings follow clear procedural rules:

• A creditor must file a Claim and Statement of Claim outlining the debt.
• If the debtor does not defend, a default judgment can be entered.
• Even after judgment, creditors may need to pursue enforcement measures such as garnishee orders, seizure of property, or writs for possession.

Proper documentation, timely filing, and adherence to procedural requirements are essential to ensuring the creditor’s rights are fully protected.

Case Example: Westpac Banking Corporation v Adhikari [2023] QDC 203

A recent example illustrates the importance of process and enforcement in Queensland:

In Westpac Banking Corporation v Adhikari [2023] QDC 203, the District Court of Queensland considered a default judgment application relating to non-payment of a mortgage-secured loan. The debt involved property valued at approximately $420,000.

The Court:

• Approved the default judgment in favour of Westpac.
• Granted a warrant for possession, allowing the bank to enforce the judgment despite objections from the debtor and a third-party occupier.
• Emphasised that properly documented claims, supported by affidavits, are enforceable under Queensland law.

Key lessons for businesses:

• A judgment debt is the first step — enforcement is often necessary to actually recover funds or assets.
• Debtors may attempt to dispute or delay payment, but following correct procedures strengthens your position.
• Documenting all agreements, invoices, and correspondence is critical to a successful outcome.
• For smaller debts, QCAT or the Magistrates Court provide faster and more cost-effective options, while mid-size debts require District Court procedures.

How Aitken Partners Brisbane Can Assist

Navigating debt recovery in Queensland can be complex, particularly for mid-size or larger claims. Whether your business is chasing overdue invoices, recovering loans, or seeking enforcement of a judgment, expert guidance can significantly improve your chance of a successful outcome.

Principal Lawyer Erin Prout brings significant experience in debt recovery, insolvency, and commercial law. Erin has been recognised for her expertise, having been nominated as a finalist for the Women in Insolvency Victoria Awards, highlighting her exceptional standing in the industry.

Principal Laywer, Aaron Stewart, an experienced commercial law adviser at Aitken Partners Brisbane, has assisted numerous clients in recovering outstanding debts, achieving excellent outcomes by guiding them through Queensland’s legal debt-recovery framework. Together, Erin and Aaron provide strategic, high-quality support to ensure clients:

• Understand their legal options and potential outcomes.
• Draft and lodge Claim and Statement of Claim documents correctly in QCAT, Magistrates Court, or District Court depending on the debt size.
• Pursue judgment and, if necessary, enforce it through appropriate legal mechanisms.
• Protect their business interests while maintaining compliance with procedural rules.

Take Action to Protect Your Business

If your business is owed money, do not wait. Early action is essential to preserving your rights and maximising recovery.

Contact Aitken Partners Brisbane today to speak with Erin Prout, Aaron Stewart, and the team. With their guidance, you can confidently pursue debt recovery and ensure your business receives what it is owed under Queensland law.