What is a Court Judgement on my credit file?
A court judgement listed on your credit report is a ruling against you by a court. As such, the court case would normally be as a result of a financial dispute between yourself and a creditor. Hence, the court outcome would incur a judgement payment against you. Also, the judgement payment would give the creditor enforcement action to force you to pay the debt.
The court will also usually assign legal costs to the creditor for the debt collection.
How can the court force a judgement payment?
There are a number of ways the courts can force payment of monies:
- Instalment order, this is where you are required to pay the debt by instalments to completion over a period of time.
- Garnishee Order, this allows the court to force payment via direct debiting your bank account. Also, the court can order a garnishee aginst your income. Plus, the ATO or other creditors can force a garnishee against future invoices by making direct contact with your customers.
- Asset seizure and sale, this is where the court forces a repossession of fixed or moving assetts for sale to repay your creditor.
- supreme court
- apply to the court
Financial judgements stay on your credit file for up to 7 years. Such credit file judgements can make it difficult to obtain finance through the traditional means such as via a bank or credit union. Typical judgment debt we source finance for are:
- Australian Taxation Office - Tax Debt Judgement
- Creditor Judgements from a variety of creditors (or debt collectors) such as GE, Lion Finance, ACM Group etc
- Businesses you owe money to that have taken you to court. The court has ruled you owe money and hence a judgement has been issued.
Related Article: See credit defaults and their affects here.
Each judgement ruling can have a different outcome depending on the court, creditor, judge attending to case and if you attended court to argue your case. The first step in resolving a judgement is to identify your risk of bankruptcy and loss of assets.
Courts that can assign judgements
- Magistrates' Court, which is generally used for most matters. As such, the less serious matters such as traffic offences.
- County Court, is used for more serious crimes and for financial claims over $100,000.
- Supreme Court, is used for more serious criminal cases where a judge and jury are required. Also, the court deals with financial cases over $200,000.
- Children's Court, this is a court that handles matters related to children. As such, we don't usually see financial outcomes from the childrens court.
- Coroners Court, this court investigates matters related to unexpected deaths; or where a body cannot be found. Again, we don't see financial or court judgement outcomes from this court.
- Neighbourhood Justice Centre, this is a Victorian court associatted to the City of Yarra. Aagin, we dont see finaical judgements ruled upon from this court.
Related article from Legal Aid Victoria: The Victorian courts and tribunals
Loan Saver Network recommend obtaining legal advice for any court matter. Consequently, you may use your own solicitor or legal aid to offer advice. However, you may obtain financial advice via a financial councsellor who can advise of your rights to fianncial hardship.
Loan Saver Network can assist in identifying your next step and the available debt consolidation solutions. Contact us today on 1300 796 850.