County Court Judgement - Debt in Australia

Bradders1975

Hi,

I live and work in the UK and am a permanent resident. Some years ago i got into debt and didn't deal with it particularly well. I eventually sorted that out, didn't go bankrupt and have paid the vast amount of things back and sorted myself out for the future in terms of attitude to debt and credit. Unfortunately one of the debts that is outstanding has reared its head from Australia. It is a credit card that has not been paid back. I have this week received a county court claim for the money. I have a couple of questions.

1. Does a UK county court have jurisdiction over this debt (handled by a UK debt collector but the bank is Australian and the debt is in Australia)
2. I don't agree with the amount as they have continued to charge interest on the account rather than close it as defaulted. If i dispute the amount however do i run the risk of admitting liability to the whole amount?

My less ethical question:

1. Can I go bankrupt in Australia from the UK, thereby avoiding this debt?

Thanks for any consideration.

chattychappy

This is a complicated question - can I ask how much is involved as it might be worth getting proper legal advice?

But in general, Australian judgments can be enforced in the UK.

Bradders1975

Hi, Thanks for the response.

The amount of the credit card debt is $5000AUD. Though with interest and charges it has been raised above that significantly to around $8000AUD. They are using a very beneficial (to them) exchange rate to calculate the amount in sterling too.

ILW

Doesn't sound worth going bankrupt for.

Bradders1975

yeah, and i'd rather not as it puts me back where i started about 5 years ago when the debts accumulated.

HappyMJ

They would have sold the debt to a local DCA. I would get legal advice as to whether they can or can not get a CCJ against you.

5 years...Oz is the same as here 6 years and statute barred. When was the last acknowledgement of the debt made. Payment or letter?

Bradders1975

I don't think a payment has been made since 2004 or early 2005

Bradders1975

There has been no acknowledgement of this debt since August 2004. That would put it over the 6 years. Do i return the CCJ claim not acknowledging the debt?

I will get some legal advice on this.

view

Here's some info from The Law Handbook
http://www.lawhandbook.org.au/handbook/ch08s01s02.php


Statute barred debts
Under the Limitation of Actions Act 1958 (Vic) ("Limitations Act"), a creditor only gets a limited amount of time to sue a debtor for a "simple contract". Most debts arise from simple contracts. If judgment has not been entered against you in a court (see: "Court procedure", below), the time limit is six years. If a creditor does not bring court action against you within the relevant time limit, the debt becomes "statute barred" and you have a complete defence to any court action brought against you.

Time under the Limitations Act starts to run from:

• the date you should have made a payment;
• the date you last made a payment; or
• the date you or your representative acknowledged in writing that you owe the debt.

You should go to the most recent of these events and count six years. If six years has expired, the debt is statute barred. While this does not mean that the creditor cannot ask you to pay the debt, it does mean that if the creditor seeks to sue you in court for payment, you will have a complete defence.

What I'm unsure about however, is if your state has an overruling act vs Federal governemnt. In fact I'm not even sure if a State act can overrule a Federal one .. but I'm sure someone will soon tell me if I'm wrong !

chattychappy

They can either bring an action in the UK courts or Australian courts (for enforcement here).

If you wish to rely on the limitation defence, then you must put that as your defence. You do not need to, and should not need to acknowledge the debt in doing so. If you fail to defend the action then judgment could be given against you.

People refer to this as meaning that the debt is "statute barred". Do note, however, that in rare cases the court can effectively extend the limitation period. Once you've established that the claim would normally be timed out, then it's for the claimant to establish that one of the exceptions to apply - for example the fraud exception in s32 Limitation Act 1980. As I say, these are rarely applicable but I mention them for completeness.

If you have the original agreement, look for an exclusive jurisdiction clause. If there is anything to say that Australian courts shall have exclusive jurisdiction then that is a further defence (it means that you and they have agreed in advance not to use foreign courts). Note that this is different from saying Australian law applies. Also it doesn't prevent an Australian judgment being enforced in the UK.