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What is a Judgement Debt? | Where a debt is taken to court, a judgement debt is when a defendant (judgement debtor) has been judged to owe that debt by a court. The judgment creditor has 12 years to take further action to recover money owed by you. |
How does it affect my credit rating? | Judgements Debts may impair your credit worthiness, making it difficult to obtain lines of credit and assets such as a credit card, mobile phone and car. |
I was not notified about the judgement, what should I do? | If you are notified a judgment has been entered against you, but you did not receive a Complaint (This is a formal document filed with the Magistrates’ Court setting out the creditor’s claim. A Complaint is formally served on the debtor, which means it is usually personally delivered to the debtor, with two blank Notices of Defence) and therefore have been unable to lodge a Notice of Defence, you should seek legal advice. If you delay you may lose your rights to contest the claim. |
What happens if I ignore the Judgement Debt |
A Judgement Creditor can enforce the claim by:
2. Garnishee Order: The judgment creditor can ask the Court to "garnishee" your wages or bank account. This is a court order telling your employer or bank manager to give your money to the judgment creditor and not to you. |
How do I settle this debt? |
If judgement has been found against you and you want to pay in instalments, fill out a form at the Local Court "confessing" to the debt and applying to pay by instalments.
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What happens if I can’t afford it | If you cannot afford to pay the judgement debt because you have other debts, contact Debt Fix (1300 DEBT FIX or 1300 332 834). We will examine your situation and present options to you. |
I dispute the Judgement, what should I do? | In some circumstances you may apply to the court to have the judgment set aside. You will have to explain to the court why you failed to lodge a defence or did not attend court, and you will also be required to file your notice of grounds of defence within a specified time. In some cases you will have to pay additional fees and costs. |
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Important: This information sheet is not legal advice and should not be interpreted as such. This sheet is meant for information only. Information regarding the subject matter contained within this fact sheet may vary from state to state, therefore in the event that further information is required, legal advice should be sought. Information is current as at 05/03/2006