The information in this section is aimed at creditors who are owed debts of no more than $12 000 (which is the limit for claims in the Civil (Minor Claims) Division of the Magistrates Court of South Australia).

The information is largely reproduced from our booklet How to Recover a Debt.

If you are owed a debt as a subcontractor or supplier in the building and construction industry, then you may be able to make a claim under the Building and Construction Industry Security of Payment Act 2009 (SA) (for further detail see Debts in the Building and Construction Industry).

Things to consider before pursuing a debt

Proving your debt

Whenever you are owed a debt you should have proof that the debt exists and proof of the debt’s value. You should keep copies of any agreements, invoices, emails, letters or other documents that show how much money is owed, and the time, date or circumstances of the debt.

When making a verbal agreement, write down any terms or conditions of the agreement and the time and date that it took place. In the case of a verbal agreement, it can be useful if there is a witness who saw the agreement take place or saw the debtor refuse to pay. Evidence such as a bank transfer or cheque records may also substantiate the verbal agreement.

Time limits

Legal action to recover a debt must be commenced within six years from the date when the debt first came about. If, during that time, the debtor acknowledges or confirms the debt (by making a promise in writing signed by the debtor or their agent to pay the debt) then the six year period begins again from that date.