Court Judgements And Your Credit Score

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Court Judgements

Court judgements are outcomes of a civil court proceeding related to a debt owed which has been found in favour of the creditor. Court judgements indicate similar information as a default with some additions; the court type and plaint number (court reference). Court judgements give an indication of any past, current and pending action and is very important as it can identify major credit issues. Court judgements can give an indication a creditor is seeking further recovery such as a bankruptcy. Court Judgements last 5 year if paid before 5 years, or 7 years if not paid.

Why is my Court Judgement listed as unpaid when i know it's paid.

Court judgements are outcomes of a court proceeding. In 90% of all cases where court judgements are listed, they are noted as unpaid even if it has been paid. The reason behind this occurrence is two fold:

  1. Court judgements are not lodged by the creditor - they are an outcome of a court case.
  2. When you pay a creditor they are not the party who updates your credit file to note the court judgement as paid. To do this the creditor would need to notify the court who in turn notifies the credit reporting agency the debt is paid - this step is quite often missed by a creditor. You will need to make contact with the creditor and request the court judgement be updated, otherwise obtain a receipt of payment with the correct payment date to provide to the court yourself.
  3. In some circumstances the court judgement can be removed if the creditor provides a letter of discontinuance. The form can be obtained from the court that heard the case.

Please note that not all creditors will sign a notice of discontinuance form to remove the court judgement.

We advise obtaining a free and confidential consultation prior to submitting any loan applications. When you have court judgements, the loan submission process should be strategic and systemised to provide the best chance of a successful result. This includes refinancing or when applying for debt consolidation home loans.

If you would like expert advice on this, contact us on 1300 796 850 for a confidential consultation and assessment, or submit an enquiry below.