Tenancy Debts

Commercial Tenancy Debts

Where a commercial tenant owes a landlord rent, it may be open to the landlord to seize the tenant’s goods for the rent and, if payment is not made, to sell those goods. The landlord may also be entitled to re-enter the premises, terminate the lease and sue the tenant for the landlord’s loss and damage.

Acorn Collection Services Australia

Real Estate Agents

Acorn Collections also collect debts owed to real estate agents for unpaid commission and advertising.

Commercial Tenancy Debt Recovery Procedure (QLD)

Acorn Collection Services will accept rental debt recovery matters on a “No Recovery, No Cost” basis.

You must provide us with as much information as possible in relation to the debtor.

The more information that is provided the better the chances of collection are.

Step 1

Our first call to action will be to:

• Make contact with the tenant and issue a Final Demand for payment; and
• Seek payment in full or negotiate a payment arrangement.

Step 2

If Acorn Collection Services initial actions do not bring amount payment or settlement of the debt, you may wish to consider bringing an action before the Queensland Civil and Administrative Tribunal (QCAT).

The reason being that, before any further enforcement procedures can be taken, an order of judgment needs to be obtained from QCAT. This can be done by the landlord personally or by Acorn Collection Services. We can undertake this process on your behalf for a fee of $250.00 plus GST and the QCAT application fee.

Step 3

Once an order from QCAT has been obtained, the next step is to:

• Obtain from QCAT a certified copy of the order so that it can be registered in the Magistrates Court. This can be requested by letter or in person and is simply a reprint of the order made by QCAT and signed by an authorised representative of QCAT.
• Provide the certified copy of the order to Acorn Collection Services.

Step 4

If payment or settlement of the debt has not been achieved by this stage our legal partner may need to be instructed to:

• Register the QCAT order in the Magistrates Court of Queensland.
• Once the QCAT order is registered in the Magistrates Court of Queensland, the debt may be listed with the various credit reporting agencies as a default. This may prevent the tenant from getting credit which in turn may prompt payment of the debt.
• Once the QCAT order is registered in the Magistrates Court of Queensland, various enforcement processes can be undertaken by our legal partner. Each of these enforcement processes have costs associated with them which are payable to our legal partner but are recoverable from the tenant.

Some enforcement processes to be considered are:

Enforcement Hearings

An enforcement hearing uncovers financial information about a person who owes money (enforcement debtor) under a court order. The person owed money (enforcement creditor) can apply to the court for an enforcement hearing. This requires the debtor to attend court and complete a statement of their financial position. This process allows the creditor to find out the debtor’s ability to pay the financial obligation. A creditor can start enforcement proceedings without leave from the court within six years of the money order or judgment being made.

Enforcement Warrants

Once a judgment or money order has been filed and/or registered in the Magistrates Court, the person owed money (enforcement creditor) can make an application to the court to issue an enforcement warrant to recover the debt.

Enforcement warrants can authorise the seizure and sale of property of the enforcement debtor/s, the redirection of money that is owed to the enforcement debtor or the redirection of their earnings.

Other Steps

There are a number of other enforcement measures that require advice from a qualified lawyer.

Our legal partner will explain the above and other enforcement measures available to you once Acorn Collection Services exhausts its initial action without success.

Our legal partner will provide an exact cost for each enforcement measure before commencing work on your behalf. Our legal partner will not charge you for the explanation and advice about the enforcement options and there is no obligation for you to continue in the enforcement of the debt recovery.