VIC Car Accident Debt - Debt Collectors Taking to Court

[Parminder singh]

I had a car accident a couple of years ago. When the debt collectors agency got in touch with me I told them that I can only pay instalments as my wife is not working and we have a baby to support as well. The debt collectors took default judgement against me and want me to pay the interest on the debt and other charges. I have no assets and still willing to take pay.

What options do I have?

Thanks.

 

[Amanda E]

What is the amount of the debt? And did they get the default judgment in the Magistrates Court? If so, see Civil and Money Matters FAQ | Magistrates' Court of Victoria that takes you through your options for applying for a rehearing.

You might also find this article of dealing with debt collectors helpful: Debt Collectors - Tips for Dealing with Them! - Legal Blog - LawAnswers.com.au.

It may be the case that you can negotiate a payment plan with them, and also then apply for rehearing to set aside the default judgment. Make sure you get everything in writing/write down details of all phone calls as well.

 

[Parminder singh]

What is the amount of the debt? And did they get the default judgment in the Magistrates Court? If so, see Civil and Money Matters FAQ | Magistrates' Court of Victoria that takes you through your options for applying for a rehearing.

You might also find this article of dealing with debt collectors helpful: Debt Collectors - Tips for Dealing with Them! - Legal Blog - LawAnswers.com.au.

It may be the case that you can negotiate a payment plan with them, and also then apply for rehearing to set aside the default judgment. Make sure you get everything in writing/write down details of all phone calls as well.

Thanks a lot Amanda for taking time to reply, the debt amount was $4800 but now with the further costs and interest it's around $6800 as I offered them various payment options but they refused all of them without providing any reason and wanted full money in one go.

I was planning to go to court for instalment order but doing that I will have to pay the full amount but I really think that the other party didn't follow the code of conduct as they never showed any intent on settling this matter.

I have a complete record of my conversations with them, so please suggest that if I apply for payment plan in court in order to stop any further charges then can I apply for setting the judgement aside sometime after that??

Thanks