Our Queensland client lent someone several thousand dollars.
The deal was simple. When he asked for it back, she would repay it, plus an agreed extra amount for the time she’d had the money.
When he asked for it back, she didn’t pay. ezylegal took her to court, and the court gave judgment for the full amount still owed, plus interest and our client’s legal costs.
At a glance
- Problem: A personal loan wasn’t repaid when the lender asked for it back.
- Claim against: The borrower.
- Legal basis: Breach of a loan agreement made partly in writing, to recover an unpaid debt.
- Result: Default judgment in the Queensland Magistrates Court for the full amount still owed, plus interest and legal costs.
A loan on a promise
Our client handed over the money in 2023. They agreed, both in conversation and in writing, that it would be repaid when he asked, with an extra amount in place of interest.
In early 2025, he asked for it back in writing. The money didn’t come.
Taking it to court
ezylegal filed a claim in the Queensland Magistrates Court for the loan, the agreed extra amount, and costs.
The borrower wasn’t easy to find. When our process server first tried to serve her, she rang him back, said she didn’t owe anyone money, and wouldn’t make a time to meet. The process server kept trying and served her personally ten days later.
She then had 28 days to file a defence. She didn’t.
The outcome
ezylegal applied for default judgment. The court ordered the borrower to pay the full amount still owed, plus interest and our client’s legal costs.
That judgment gives our client a court-enforceable debt. If she doesn’t pay, it can be collected through the court, including by taking money from her bank account or wages.
How default judgment works
When you file a claim in the Queensland Magistrates Court, it has to be served on the other side. From then, they have 28 days to file a notice of intention to defend. That’s a formal document saying they dispute the claim, with their defence attached.
If they don’t, you can ask the court for default judgment. For a debt or a fixed amount like a repair bill, the court registrar can enter it on the papers, without a hearing. You don’t need to go to court or give evidence in person.
The judgment covers the amount claimed, plus interest and a set amount for legal costs.
What default judgment means for the other side
A default judgment is a court order to pay, and it has real consequences for the person who ignored the claim:
- The debt becomes enforceable. If they still don’t pay, the court can issue an enforcement warrant to seize and sell their property, or redirect money from their wages or bank account.
- They can be ordered to explain their finances. The court can summons them to an enforcement hearing, where they must disclose their income, assets and debts under oath.
- Interest keeps adding up. Interest runs on the judgment until it’s paid in full.
- It doesn’t go away quickly. In Queensland, a judgment can be enforced for up to 12 years.
- It can affect their credit. Court judgments are public records and can show up on credit reports, making it harder to borrow.
- Bigger debts can lead to bankruptcy or winding up. If the debt is $10,000 or more, a creditor can use the judgment to start bankruptcy proceedings against a person. A company that doesn’t pay can be served with a statutory demand and wound up.
The other side can apply to have a default judgment set aside, but they have to act quickly, explain why they didn’t respond, and show they have a real defence. Ignoring a court claim almost always makes things worse.
Can I sue someone who won’t repay a personal loan?
Yes. If you can show you lent the money and they agreed to pay it back, you can sue for the debt, plus interest and costs.
A written agreement makes it much easier, but texts, emails and bank transfer records can also prove what was agreed. Many borrowers don’t respond to a court claim at all. When that happens, you can ask the court for judgment without a hearing.
If you’re facing something similar
If you’ve lent money and it hasn’t been repaid:
- put any loan in writing, including the amount, any interest and when it’s due
- pay by bank transfer, not cash, so there’s a record
- ask for repayment in writing, with a clear deadline
- keep every text and email about the loan
- don’t let it drag on, because the longer you wait, the harder it can be to collect
Get advice early, because time limits apply. Read more about debt and contract disputes.
ezylegal operates on a no-win, no-fee* basis across consumer, commercial and insurance disputes, so you’re not weighing the cost of a lawyer against the cost of walking away.