How to File a Debt Recovery Application in NCAT (New South Wales) Step-by-Step

If someone owes you money in New South Wales and will not pay after a formal demand, you might expect the NSW Civil and Administrative Tribunal (NCAT) to be your next step. For a business owed money, it usually is not. A business chasing an unpaid debt has a debt claim for the Local Court of New South Wales, not NCAT: the Small Claims Division hears claims up to $20,000 and the General Division hears claims over $20,000 up to $100,000. No lawyer is required to start a claim.

Before You Apply: Is NCAT the Right Forum?

Usually not for a debt. NCAT’s Consumer and Commercial Division hears consumer claims up to $100,000, and under the Fair Trading Act 1987 (NSW) a consumer claim is a claim brought by a consumer about goods or services supplied to them (s 79E, s 79I). A supplier chasing its customer for payment is not bringing a consumer claim.

A debt goes to the Local Court where:

• The debt is $100,000 or less (Small Claims Division up to $20,000; General Division over $20,000 up to $100,000)
• The debtor is located in New South Wales or the contract was performed in New South Wales
• The debt is liquidated — a specific, ascertainable amount (not estimated damages)
• You have already sent a letter of demand giving the debtor a chance to pay

NCAT comes into it only when:

• Your customer has lodged a consumer claim against you (for example, alleging the work was defective), and the Tribunal can order the claimant to pay you within that claim (s 79O)
• Your tenant owes rent or other money under a residential tenancy (NCAT’s tenancy jurisdiction)
• You are a contractor owed money for residential building work, which NCAT can hear under the Home Building Act 1989

The Local Court does not hear:

• Debts over $100,000 (use the District Court)
• Family law property matters

If your debt is owed by a registered company and exceeds $4,000, consider a statutory demand under the Corporations Act before starting a court claim.

Step 1: Gather Your Evidence

The court decides cases based on the evidence you provide. Before filing, collect:

• Written contract or agreement — signed quote, purchase order, email exchange, terms and conditions
• Invoices — showing the amount owed, date due, payment terms
• Proof of delivery — delivery dockets, tracking confirmations, signed receipts
• Letter of demand — proof you gave the debtor notice and a deadline to pay
• Bank statements or payment records — showing any partial payments made
• Correspondence — emails, text messages, letters where the debtor acknowledged the debt or promised to pay

Organise everything chronologically. Clear, concise evidence bundles are easier for the court to follow.

Step 2: Complete the Statement of Claim

A Local Court debt claim is started with a Statement of Claim. You can file it through the NSW Online Registry.

Information you will need:

• Your full legal name and contact details (you are the “plaintiff”)
• Debtor’s full legal name and address (they are the “defendant”)
• If the debtor is a company, include the ACN and registered office address
• Total amount claimed (principal debt + interest if applicable)
• Brief description of the claim — “Unpaid invoice for building materials supplied on [date]”
• What you are asking for — typically judgment for the amount owed, plus interest

Interest

You can claim interest if your contract specifies an interest rate, or you can claim statutory interest from the date the debt became due. State the basis clearly in your statement of claim.

Step 3: Pay the Filing Fee

Filing fees change each 1 July; check the current fee on the Local Court’s website before you file.

Step 4: File the Statement of Claim

Online (recommended):

1. Create an account on the NSW Online Registry
2. Complete the statement of claim electronically
3. Pay the filing fee
4. Submit

The Local Court’s website explains the other ways to file.

Step 5: After You File

Once filed, the claim has a case number. The debtor can pay, file a defence, or do nothing.

You are responsible for serving the statement of claim on the debtor.

Step 6: Serve the Debtor

Service means delivering the statement of claim to the defendant in a legally valid way. The Local Court’s website explains the accepted ways to serve a statement of claim.

Proof of service:

Keep proof of when, where, and how you served the documents. You will need it if the debtor does not respond and you ask for judgment.

Step 7: Prepare for the Hearing

In the Small Claims Division, a defended claim goes to a pre-trial review first, where a registrar, assessor or judge tries to help the parties agree. If it does not settle, it is listed for a hearing. Small Claims proceedings are less formal and less technical than other court cases, and the rules of evidence do not apply.

What to bring:

• Your own copy of all your evidence, plus anything the court has directed you to file and serve
• A chronological summary of events — one page, dot points
• Written statements (if anyone else can verify the debt or the work performed)
• Calculator and notepad

What to expect:

• The court will ask you to explain your claim
• The defendant will have a chance to respond
• The court may ask questions about the evidence
• In defended small claims matters, witnesses are generally not called unless the court decides otherwise

You do not need a lawyer, but you can have one if you choose.

If the debtor does not respond:

If the debtor does not file a defence, you may be able to ask the court for judgment without a hearing (default judgment). You will need to show the statement of claim was properly served.

Step 8: The Decision

The court may give its decision on the day or later in writing.

If you win, the court will give judgment for:

• The principal debt
• Interest (if awarded)
• Any costs the court allows

Step 9: Enforce the Judgment (If They Still Do Not Pay)

If the debtor does not pay the judgment, you can:

• Apply for a garnishee order (attach money in their bank account or wages)
• Apply for a writ of execution (sheriff seizes and sells their property)
• Issue a bankruptcy notice (if the debt exceeds $10,000)

Enforcement is a separate process. If NCAT made a money order in your favour within a customer’s consumer claim, you register a certified copy of it with the Local Court and enforce it there.

Common Mistakes to Avoid

Lodging a debt at NCAT — a business debt is not an NCAT consumer claim, so lodging it there risks a wasted fee and lost time.

Not sending a letter of demand first — give the debtor a chance to pay before you file. Your demand also becomes part of your evidence.

Incomplete evidence — if you cannot prove the debt or the agreement, your claim may fail.

Wrong defendant details — if you serve the wrong person or company, the judgment will be unenforceable.

Missing the hearing — if you do not attend and the defendant does, the court may dismiss your claim.

Claiming unliquidated damages — this guide is about a specific debt. If your claim is for “loss and damage” without a specific amount, get advice on how to frame it.

How Claim Done Helps

Claim Done’s Tribunal Application for a New South Wales debt: your Local Court statement of claim drafted to copy into the form, plus a witness statement outline you complete. Ready in about 5 minutes.

You still file and serve the claim yourself, but you start with a professionally structured case file drafted in plain, persuasive language.

Flat fee: $97

Final Checklist

Before you file:

• [ ] Debt is $100,000 or less ($20,000 or less for the Small Claims Division)
• [ ] Debtor is in New South Wales or contract was performed in New South Wales
• [ ] You have sent a letter of demand
• [ ] You have a written contract, invoices, and proof of delivery
• [ ] You have the debtor’s current address
• [ ] You have checked the current filing fee
• [ ] You have arranged how to serve the documents
• [ ] You have organised copies of all evidence

The Local Court’s Small Claims Division is designed to be accessible. The process is straightforward if you prepare properly, serve correctly, and present your evidence clearly. Prepare your Local Court statement of claim now and start with a complete, professionally structured case file.

Frequently Asked Questions

How long does a debt recovery case take from filing to decision?

It depends on whether the debtor pays, defends or ignores the claim, and on the court’s workload. In the Small Claims Division, a defended claim goes to a pre-trial review first, and if it does not settle there, it is listed for a hearing.

Can I file a debt claim in New South Wales if the debtor lives interstate?

Possibly, if the contract was made or performed in New South Wales. However, if the debtor has no connection to New South Wales, you may need to file in the tribunal or court of their home state. Check the Local Court’s website before you file.

What happens if the debtor files a defence or counterclaim?

You will receive a copy of their defence. In the Small Claims Division, a defended claim goes to a pre-trial review, where the parties are helped to reach agreement. If it does not settle, it is listed for a hearing. If the debtor makes a cross-claim, both claims will usually be heard together.

Do I need a lawyer for a debt claim in the Local Court?

No. You can bring a lawyer if you choose, but you can also act for yourself. Small Claims Division proceedings are less formal and less technical than other court cases, and the rules of evidence do not apply.

Can I claim interest on the debt in my statement of claim?

Yes. You can claim contractual interest if your agreement specifies a rate, or statutory interest from the date the debt became due. The court can include interest in the judgment if your claim succeeds.