Statement of Claim

What it is

A statement of claim is the court document that formally begins legal proceedings to recover a debt. It names the parties, sets out the amount claimed, explains the basis for the claim and asks the court for judgment. Once filed and served, it requires the debtor to respond within a set time or risk a judgment being entered against them.

It is a structured pleading, so the facts and the legal basis for the debt must be stated clearly and accurately.

How it works

The claim is filed with the relevant court or tribunal and then served on the debtor. The debtor usually has a limited number of days to file a defence. If they do nothing, the creditor can apply for default judgment. If a defence is filed, the matter moves toward a hearing.

Because the form, time limits and court rules vary between QLD, VIC, NSW and the ACT, many businesses have the document prepared and managed for them. Merion can manage this process end to end via refer a debt.

Good to know

This is general information and not legal advice. A statement of claim is a serious step and must comply with the rules of the court in which it is filed. Errors in the claim, the amount or the service of the document can cause delay or cost. Keep evidence of the debt — invoices, contracts and statements — because these support what is pleaded in the claim.