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Recovering Debts [VIC]

Discussion in 'The Pub' at netrider.net.au started by Trundler, Mar 27, 2013.

  1. How does one go about recovering private debts in the state of Victoria?

    I've been sharing a house with three people, one of whom hasn't been paying their share of the rent. I've been paying their share on the previso they pay me back. They've failed to pay me their share each month just for rent (let alone the money borrowed) so my money loaned to them just keeps rising.

    I've called them on it and now I've got the dummy spit. They're now going to move out and I can't see them paying me back. The other question is how do I go about getting rid them out as quickly as possible (they're on the tenency agreement as a cotenent, I've also covered their bond payment) so I can get someone in who will actually pay rent?

    The figure owed is about $2000 (atm). How do I go about chasing this?
  2. #2 cjvfr, Mar 27, 2013
    Last edited: Mar 27, 2013
    A bad situation when shared households go wrong. Make sure you keep a diary of all payments, receipts etc. Get some advice from VCAT

    Try and keep track of them, copy their drivers license number if possible as an added track. If they are a co-tennent they need to notify the landlord within the terms of the lease that they intend to leave.

    Good Luck.
  3. For a 20% fee I could recover the amount owed in body parts
  4. Unless you had some type of agreement in place, you would mostly likely have to kiss that money good-bye and take it as a lesson learnt, so stop any further payments of their share. You'd next want to do is bring the matter to the attention of the property owner or property manager because once rent is in arrears, the owner may act against the person responsible, or all of you jointly liable in breach of the tenancy agreement.

    Free legal advice on tenancy disputes with landlord/real estate: http://www.tuv.org.au
    Free legal advice on tenancy disputes with co-tenant: http://www.communitylaw.org.au
    Free mediation service to help resolve disputes with your housemate(s): http://www.justice.vic.gov.au/disputes

  5. You need a judgement against them in small claims. First you need to get some proof that they owe the money, emails would be good. Then send a letter of demand, then file, you can represent yourself. Google is your friend.

    The cotenant thing is hard, personally I would dissolve the house and go your seperate ways if you are out of lease...if you are in lease then each tenant is liable for all the rent so that might not work, in theiry you could get signed off the lease if the landlord allowed it and it would cut your losses. I see them not wanting to leave and that option being the hardest.
  6. Or do what justus said
  7. if you read the little paper certain OMC's now do debt recovery if you book early this month they're giving a free ass kicking with every collection
  8. The debt is not large enough to issue a formal notice (otherwise I'd agree).

    Debts of this nature are very hard recover through formal channels and probably not worth the effort anyway. In this situation I’d mock up a letter of demand that appears to come from a collection agency. Send them and his/her parents a copy (might be young enough that parents are still a main source of funds or a boot to the arse). Once you’ve got something (anything) in writing you’ll be in a better negotiating position. Know what they own and get what you can (fridge/TV is better than nothing).

    If you get your landlord on side you shouldn’t have any problem transferring the bond to your name. Just clarify the issue, show proof of payment and get the forms in.

    Key lesson here is, don’t lend people money without securing your position and don’t take on debts of others, family/friends included.
  9. If you have any thing about the agreement in writting. try sending www.prushka.com.au/ an email and see if they are able to help

    I used them for collecting a unpaid invoice for my property maintence business while trading in Tasmania and the customer was in Vic (it was more for the principle then the amount) and the fee was reasonable.
  11. burn their fcuking house down
  12. Agree.
    Plus ask for an urgent change of locks ;)