Genuine Defence In Debt Recovery

Article Summary

A defence in debt recovery is not simply a statement that the debtor disagrees with an invoice or cannot afford to pay it. A viable defence identifies why the creditor has no legal entitlement to all or part of the amount claimed and pleads the material facts supporting that position.

Depending on the evidence, the defence may be that no contract was made, the creditor did not perform its bargain, the amount was calculated incorrectly, payment or release has occurred, the claim is outside the limitation period, the wrong defendant has been sued, or the debtor has a set-off or counterclaim.

In a Queensland court proceeding started by claim, the defendant ordinarily has 28 days after service to file a notice of intention to defend with a defence attached. Failure to respond can lead to default judgment. Filing a document called a defence is not enough: an unsupported pleading may be struck out or disposed of by summary judgment.