How Long Can a Debt Be Chased in Australia
Understanding How Long Can a Debt Be Chased in Australia
In Australia, the typical limitation period for pursuing unpaid debts is 6 years from when the debt becomes due.
However, the Northern Territory has a shorter limitation period of 3 years. This time frame defines how long can a debt be chased in Australia and how long can creditor collect on debt. During this period, debt collectors can use various methods, including negotiations, payment plans, and legal action, to recover the debt. Understanding these limitations is crucial, as it sets the boundaries for legal action and helps manage expectations about debt recovery efforts.
Our professionals are experienced in understanding these limitations to provide guidance based on your particular debt circumstances. Contact our team of debt recovery agents and specialised legal team to ensure you’re informed and prepared to manage the situation effectively.
How Acknowledgment and Payments Affect the Limitation Period
In Australia, if a debtor acknowledges the debt or makes a partial payment, the limitation period can be reset. This means creditors may have another 6 years (depending on the state) from the date of acknowledgment or payment to pursue legal action. So, if you’re asking, “how long can debt collectors try to collect in Australia?” – it depends on whether any acknowledgment or payments have been made.
The limitation period commences / restarts from one of the following dates: when the debt became due, the last payment made, or the last date the debtor acknowledged the debt in writing. Accurate calculation of this period is crucial, as failing to do so could result in your inability to successfully recover the debt, and the debt will become statute barred.
Additionally, if a debtor declares bankruptcy, the debt may be affected differently. Bankruptcy typically lasts for 3 years, during which creditors cannot pursue claims against the debtor.
What to Do if You’re Facing Debt Collection After the Limitation Period
If the debt is not pursued within the limitation period, it may become “statute barred,” meaning creditors can’t take legal action to enforce it. However, you can continue to attempt to collect the debt through other means, such as phone calls and letters. Although due to the delay minimal efforts can be done.
If you’re wondering, “how long will debt collectors try to collect?” – we are able to enforce collection action until the debt reaches its limitation period. Macquarie Collections is able to provide an understanding of these limits and can help you manage the situation effectively and know your rights.
Get Expert Help with Your Debt Concerns
If you’re unsure how long do debt collectors have to collect, seek advice from our team of professionals. Our team can provide clarity on your specific situation and can offer guidance on how the limitation period affects your case and advise you on the best course of action. Whether you’re facing persistent collection attempts or need to understand your rights and options, expert advice ensures you’re well-informed and equipped to handle the situation effectively.
EMAIL: INFO@MACQUARIECOLLECTIONS.COM.AU
PHONE: 1300 645 080