If they still do not pay
The deadline has passed and the money has not arrived. The right next step depends on who owes you, how much, whether they dispute it, and whether they have anything to pay with. We quote for each step before we start.
On this page: Your options After a judgment Enquire
Your options in Victoria
A payment plan, in writing. If the debtor finally engages, a signed agreement with dates and amounts, and what happens if a payment is missed, often recovers more, and sooner, than court.
A claim in the Magistrates’ Court. The Magistrates’ Court hears civil claims up to $100,000. Larger claims go to the County Court. Claims under $10,000 are usually sent to arbitration, a less formal hearing where the legal costs the court can award are limited.
VCAT. A dispute between a buyer and a seller of goods or services, including a claim for an unpaid account, can go to VCAT’s Civil Claims List. VCAT does not deal with car accident claims.
A statutory demand. Available where a company owes you at least $4,000 and has no genuine dispute about it. See Statutory demands.
After a judgment
A judgment says the money is owed. If it still is not paid, the court has ways to enforce it, such as:
- a summons requiring the debtor to come to court and answer questions about their income and assets;
- a warrant to seize and sell their property;
- an attachment of earnings order, so that part of their wages is paid to you, or an attachment of debts order, so that money owed to them is paid to you;
- an instalment order, so that the debt is paid in set amounts.
For an individual, a court judgment, or two or more judgments, totalling at least $10,000 also opens the way to a bankruptcy notice.
Choosing a step
- Is the amount worth it? Court and enforcement costs are only partly recoverable from the other side. We give you a realistic picture before you commit.
- Is it disputed? A disputed debt needs a court claim, not a statutory demand.
- Can they pay? A judgment against someone with nothing is a piece of paper. We can check what is known about the debtor before you spend more.
- How old is it? Contract debts must usually be sued on within six years of falling due.
Law referred to
- Magistrates’ Court Act 1989 (Vic) ss 3(1) (definition of “jurisdictional limit”), 100(1), 102, 105, 111(1).
- Judgment Debt Recovery Act 1984 (Vic) pts II, III.
- Australian Consumer Law and Fair Trading Act 2012 (Vic) ss 182, 184.
- Limitation of Actions Act 1958 (Vic) s 5(1)(a).
- Bankruptcy Act 1966 (Cth) ss 5(1) (definition of “statutory minimum”), 40(1)(g), 41(1).
- Bankruptcy Regulations 2021 (Cth) s 10A.
Last reviewed: October 2026, by a Victorian solicitor with a current practising certificate. This page is general information about the law in Victoria as at October 2026. It is not legal advice about your circumstances.
Talk to us
Tell us where things stand and we will set out the options and their costs.
Phone: 1800 776 529
Email: info@lettersofdemand.com.au
Hours: Monday to Friday, 9 am to 5:30 pm
Office: 435 Nepean Highway, Frankston VIC 3199. We act across Victoria by phone, email and online.