In the civil registry within the New South Wales (NSW) Local Court, a statement of claim for a liquidated debt is a common legal tool used to recover a specific sum of money that is owed. The defendant in any proceedings has the opportunity to respond by filing a defence.   In our experience, in most cases a defence is not filed. It may happen once in every 20 or 25 cases. Even less cases proceed to a final hearing, with most settled during case management. However, the process can become intricate when the defendant decides to defend the claim.   This article outlines

Introduction   In Australia, creditors have various enforcement procedures at their disposal to recover debts from judgment debtors who fail to pay judgment debts. A judgment occurs when a court rules in favour of the creditor because the debtor has failed to respond to legal proceedings, or a matter has been heard by the court and the court has found in favour of the creditor.   Judgment is a court order that the debtor owes the judgment debt amount, plus interest and legal costs, and is legally obligated to pay the creditor. However, obtaining a judgment does not automatically result in payment; creditors often