Debt and debt collectors

Debt is money that is owed to another person or organisation through an agreed contract, whether written or spoken.

A person or organisation in debt, owing money, is known as a debtor. The person or organisation owed money is known as a creditor.

Both debtors and creditors have legal rights.

If you cannot repay a debt by an agreed date, it is important to seek advice and take action as soon as possible. There are free financial counselling services that can help in dealing with debt. Unpaid debt may result in a creditor seizing assets or taking a debtor to court in order to recover costs.

Creditors generally send a letter of demand to your last known address. If you move, you do not have to tell creditors your new address. If you decide not to, then court action may be taken against you and orders made without you knowing.

Disclaimer

The information displayed on this page is provided for information purposes only and does not constitute legal advice. If you have a legal problem, you should see a lawyer. Legal Aid Western Australia aims to provide information that is accurate, however does not accept responsibility for any errors or omissions in the information provided on this page or incorporated into it by reference.