Debt Recovery: QCAT or Magistrates Court?

One of the most important questions that creditors face in debt recovery is whether to make their claim in QCAT or the Magistrates Court.

There are a few key differences between the two, which means that there are also advantages and disadvantages to deciding where to pursue your debt matters. Ultimately, it will depend on your situation and objectives as to what is most appropriate for you.

Key Differences

QCAT is a Tribunal, which means that it is designed to be flexible, cheap, and quick at resolving disputes. It is also designed to be consumer friendly, allowing litigants to self-represent themselves at QCAT. On the other hand, the Magistrates Court is a traditional court, meaning that it is more formal and adversarial than QCAT.

Advantages and Disadvantages for Debt Recovery

QCAT

Advantages	Disadvantages
Cheaper fees and costs – court fees and legal fees are often cheaper in QCAT	Usually cannot recover costs – QCAT is a no costs jurisdiction meaning that you usually won’t be able to recover your legal costs from the other party if you win.
Consumer friendly – QCAT is designed with simplified processes for self-represented litigants	Enforcement – once you obtain a decision from QCAT, you will need to enforce it through another Court, likely the Magistrates Court

Magistrates Court

Advantages	Disadvantages
The formal procedure of Court may be more likely to strike fear into your debtor	Being a Court, there are more complex processes which may mean you need to seek legal advice, increasing your costs
Fees recoverable – unlike QCAT, you will likely be entitled to a part of your costs of the proceeding if you are successful.	Longer time frames – the Court processes are not as streamlined as QCAT, meaning that if the debtor defends your Claim the time to progress your Claim to final hearing will likely be longer

We can assist you with further information and advice

Contact us today to discuss your debt and what the appropriate jurisdiction is for your particular case and circumstances.