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When someone owes you money, it can quickly become stressful, especially if they stop responding, dispute the invoice, or promise payment but never follow through.
In New Zealand, there are several ways to recover a debt. The right option depends on the amount owed, whether the debt is disputed, who owes the money, and whether the debtor has the ability to pay.
This article explains the main debt recovery options available in New Zealand in 2026, including the Disputes Tribunal, District Court, High Court, and statutory demands.
Debt recovery is the process of taking steps to recover money that is legally owed to you or your business.
This may include:
The best approach is usually to start with clear communication and written evidence, then escalate if payment is not made.
Before starting formal legal proceedings, it is important to make sure the debt is properly documented.
This may include:
In many cases, the next step is to send a formal letter of demand. This letter usually sets out the amount owed, the reason the debt is due, the deadline for payment, and what may happen if payment is not made.
A letter of demand can sometimes resolve the matter without needing court action.
Yes, but only in certain situations.
From 24 January 2026, the Disputes Tribunal can hear claims up to $60,000. This is an important change, as the previous limit was $30,000. The Ministry of Justice has also confirmed a new filing fee of $468 for claims between $30,001 and $60,000.
The Disputes Tribunal is designed to be quicker, cheaper and less formal than court. It is generally used for genuine disputes involving smaller civil claims. Lawyers usually cannot represent parties at the hearing, although legal advice can still be helpful before filing a claim.
However, the Disputes Tribunal is not a general debt collection agency. It can help with disputed debts, but it generally cannot be used where the debtor agrees they owe the money and simply refuses to pay.
If the debt is not disputed, but the debtor still will not pay, you may need to consider court action.
For many debt claims, this will involve filing a claim in the District Court. If the debtor does not respond, it may be possible to apply for judgment by default. If the matter is defended, the court process may continue through further steps before a final decision is made.
The correct forum depends mainly on the value and complexity of the claim.
As of 2026:
The Ministry of Justice confirms that the District Court hears civil claims for less than $350,000, while the High Court hears complex civil claims or claims over $350,000.
A statutory demand is a formal legal demand made against a company that owes a debt.
It is often used where:
Under section 289 of the Companies Act 1993, a statutory demand must be in writing, relate to a debt that is due and at least the prescribed amount, and be served on the company.
A statutory demand should not be used lightly. If the debt is genuinely disputed, using a statutory demand can create risk for the creditor. Legal advice is strongly recommended before issuing or responding to one.
Time limits are important.
Under the Limitation Act 2010, a defendant may have a defence to a money claim if the claim is filed at least six years after the act or omission on which the claim is based. The Act also includes rules for late knowledge claims and a longstop period in some situations.
In simple terms, many debt recovery claims need to be acted on within six years. However, limitation periods can be complex, especially where there have been part payments, acknowledgements of debt, fraud, late knowledge, deeds, guarantees, or earlier judgments.
If a debt is old, it is best to get legal advice before taking action.
Winning a claim does not always mean payment happens automatically.
If a court or tribunal makes an order requiring payment and the debtor still does not pay, further enforcement steps may be needed. Depending on the circumstances, these may include options such as deductions from income, seizure of property, charging orders, or other civil enforcement processes.
The best enforcement option depends on what is known about the debtor, their income, assets, and financial position.
Debt recovery is not only about whether the money is owed. It is also about whether the debtor can realistically pay.
Before escalating a debt recovery matter, it is worth considering:
In some cases, a negotiated repayment arrangement may be more cost effective than court proceedings.
There is no single best option for every debt. The right approach depends on the facts.
As a general guide:
Taking the right step early can save time, cost and frustration.
If you are owed money, or you have received a demand for payment, it is important to understand your options before taking the next step.
McVeagh Fleming can help you assess the debt, prepare a letter of demand, advise on the correct forum, assist with court proceedings, or respond to a claim or statutory demand.
Getting advice early can help you avoid unnecessary cost and choose the most practical path forward.
When someone owes you money, it can quickly become stressful, especially if they stop responding, dispute the invoice, or promise payment but never follow through.
In New Zealand, there are several ways to recover a debt. The right option depends on the amount owed, whether the debt is disputed, who owes the money, and whether the debtor has the ability to pay.
This article explains the main debt recovery options available in New Zealand in 2026, including the Disputes Tribunal, District Court, High Court, and statutory demands.
Debt recovery is the process of taking steps to recover money that is legally owed to you or your business.
This may include:
The best approach is usually to start with clear communication and written evidence, then escalate if payment is not made.
Before starting formal legal proceedings, it is important to make sure the debt is properly documented.
This may include:
In many cases, the next step is to send a formal letter of demand. This letter usually sets out the amount owed, the reason the debt is due, the deadline for payment, and what may happen if payment is not made.
A letter of demand can sometimes resolve the matter without needing court action.
Yes, but only in certain situations.
From 24 January 2026, the Disputes Tribunal can hear claims up to $60,000. This is an important change, as the previous limit was $30,000. The Ministry of Justice has also confirmed a new filing fee of $468 for claims between $30,001 and $60,000.
The Disputes Tribunal is designed to be quicker, cheaper and less formal than court. It is generally used for genuine disputes involving smaller civil claims. Lawyers usually cannot represent parties at the hearing, although legal advice can still be helpful before filing a claim.
However, the Disputes Tribunal is not a general debt collection agency. It can help with disputed debts, but it generally cannot be used where the debtor agrees they owe the money and simply refuses to pay.
If the debt is not disputed, but the debtor still will not pay, you may need to consider court action.
For many debt claims, this will involve filing a claim in the District Court. If the debtor does not respond, it may be possible to apply for judgment by default. If the matter is defended, the court process may continue through further steps before a final decision is made.
The correct forum depends mainly on the value and complexity of the claim.
As of 2026:
The Ministry of Justice confirms that the District Court hears civil claims for less than $350,000, while the High Court hears complex civil claims or claims over $350,000.
A statutory demand is a formal legal demand made against a company that owes a debt.
It is often used where:
Under section 289 of the Companies Act 1993, a statutory demand must be in writing, relate to a debt that is due and at least the prescribed amount, and be served on the company.
A statutory demand should not be used lightly. If the debt is genuinely disputed, using a statutory demand can create risk for the creditor. Legal advice is strongly recommended before issuing or responding to one.
Time limits are important.
Under the Limitation Act 2010, a defendant may have a defence to a money claim if the claim is filed at least six years after the act or omission on which the claim is based. The Act also includes rules for late knowledge claims and a longstop period in some situations.
In simple terms, many debt recovery claims need to be acted on within six years. However, limitation periods can be complex, especially where there have been part payments, acknowledgements of debt, fraud, late knowledge, deeds, guarantees, or earlier judgments.
If a debt is old, it is best to get legal advice before taking action.
Winning a claim does not always mean payment happens automatically.
If a court or tribunal makes an order requiring payment and the debtor still does not pay, further enforcement steps may be needed. Depending on the circumstances, these may include options such as deductions from income, seizure of property, charging orders, or other civil enforcement processes.
The best enforcement option depends on what is known about the debtor, their income, assets, and financial position.
Debt recovery is not only about whether the money is owed. It is also about whether the debtor can realistically pay.
Before escalating a debt recovery matter, it is worth considering:
In some cases, a negotiated repayment arrangement may be more cost effective than court proceedings.
There is no single best option for every debt. The right approach depends on the facts.
As a general guide:
Taking the right step early can save time, cost and frustration.
If you are owed money, or you have received a demand for payment, it is important to understand your options before taking the next step.
McVeagh Fleming can help you assess the debt, prepare a letter of demand, advise on the correct forum, assist with court proceedings, or respond to a claim or statutory demand.
Getting advice early can help you avoid unnecessary cost and choose the most practical path forward.
