Most people have heard of the Disputes Tribunal (formerly known as the Small Claims Tribunal) for debt recovery. Not everyone knows how it works and when it can be used. If you are facing difficulties recovering a debt that is in dispute, the Disputes Tribunal can be a useful and economic process to resolve the issue without the need for costly legal proceedings. The Disputes Tribunal is designed to handle claims up $30,000 without using lawyers and following a more informal procedure than the District Court or High Court. Here’s a guide on how to use the Disputes Tribunal to recover a disputed debt:
1. Evaluate Eligibility:
Monetary Limit: Your claim must be no more than $30,000 (excluding interest and costs).
Types of Claims: The Disputes Tribunal typically handles disputes over debts, goods, services, or personal property.
Dispute: Make sure there is a dispute over whether the claim is recoverable.
2. Attempt Negotiation:
Before proceeding to the Disputes Tribunal, try to resolve the issue with the debtor. This may involve sending formal letters requesting payment or using mediation services.
3. Prepare Documentation:
Gather all relevant documents related to the debt, including invoices, contracts, correspondence, and any other evidence that supports your claim.
4. File an Application:
Obtain the necessary application forms from your local Disputes Tribunal or from the Ministry of Justice website.
Complete the application form accurately, providing details of the dispute, the amount claimed, and any supporting documents.
5. Pay the Filing Fee:
There is a filing fee to submit your application to the Disputes Tribunal. The amount varies depending on the value of your claim.
6. Serve Notice to the Other Party:
Once your application is accepted, the Disputes Tribunal will serve a notice to the other party (the debtor), informing them of the claim and the date of the hearing.
7. Prepare for the Hearing:
Before the hearing date, organise your documents and prepare your case. You may want to seek legal advice if the matter is complex.
8. Attend the Hearing:
On the scheduled date, attend the hearing at the Disputes Tribunal. Be prepared to present your case and provide evidence supporting your claim.
The hearing is informal, and you will represent yourself unless special circumstances apply where someone else may be able to represent you (but not by a lawyer or experienced advocate).
9. Receive the Tribunal’s Decision:
After the hearing, the Disputes Tribunal will make a decision based on the evidence presented.
If the decision is in your favour, the tribunal will issue an order for the debtor to pay the debt. If the debtor does not comply voluntarily, you may need to take further steps to enforce the order.
10. Enforcement:
If necessary, you can apply to the District Court to enforce the Disputes Tribunal’s order. This might involve seizing property, garnishing wages, or other enforcement actions.
Tips:
Be prepared: Thorough preparation and organisation of your documents can significantly strengthen your case.
Evidence: Put your best foot forward with regard to evidence. If you have documentary evidence or a report from an expert that proves your position or disproves the debtors position produce it in your application and rely on it. Avoid the dispute being one person’s word against the other.
Consider mediation: If negotiation fails initially, mediation services are available and can sometimes help parties reach a settlement before going to the Disputes Tribunal.
Legal Advice: While not required, legal advice can provide clarity and ensure your case is presented effectively. The team at Checketts McKay Law can assist with your legal needs.