Have you got court judgments?
Court judgments occur when you are taken to court by your creditor for failing to pay back a debt you have taken out.
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Court judgments


        
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Court judgments can result in creditors being about to add the following amount to your judgment debt:

How do court judgments occur?

There may come a time where you find yourself in a bit of financial difficulty. While we generally have the best of intentions when it comes to taking out a loan, situations can occur beyond our control that can find us not only missing repayments but then defaulting on the loan. Life is unpredictable, and we can’t plan for everything. These less than ideal circumstances are likely to result in your receiving a court summons.

Court judgments occur when you are taken to court by your creditor for failing to pay back a debt you have taken out with them. They are simply looking to recoup the cost of the loan, but in the process, it will leave you with a black mark against your name. 

Court judgments can have long-lasting financial consequences. Thankfully, if you find yourself in this position, you still have options. Clean Credit is one of Australia’s leading credit repair specialists. We could remove judgments from your credit report. This can give you the fresh start you deserve to get back on track with your finances.

What is a court judgment?

Put simply, court judgments are a decision made by the court that you owe money. This is likely to happen after you fail to pay a loan or meet the terms of a financial agreement that you initially signed up for.  A creditor will generally contact you and inform you that you have a court judgment, but this is also something you should check. You can call up the court and find out the amount of the judgment, the date it was obtained, and the name of the creditor that has taken out this judgment.

There are two types of court judgment:

If you end up with a judgment against you, then you have two choices: you can accept it, or appeal it. Appealing requires you to lodge with a higher court within 28 days.

What happens when you get a default on a judgment?

If you fail to respond to this statement of claim, then a default court judgment can occur.

From the creditor’s perspective, court judgments are a form of debt recovery as they attempt to recuperate their losses.

A creditor can apply to the court for a default judgment if you as the borrower has failed to:

If you still fail to pay back the loan after a default court judgment, there is a process called ‘enforcing the judgment’, where the creditor can enforce orders for money or goods as set out in the judgment, including costs and pre-judgment interest.

How long do court judgments stay on your credit file?

Court judgments do get listed on your credit report. They will remain there for five years from the date of the judgment. This can make it difficult for you to be able to take out any lines of credit within that time. The first step is to pay off your court judgments. There are a number of options that are available to you:

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Negotiate

Negotiate with the creditor to pay the debt directly to them. You can pay it in full, offer a reduced amount to settle the debt, or organise a repayment arrangement.

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Apply to court

You can apply to the court to repay the debt in instalments.

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Bankruptcy

As a last resort, you can declare voluntary bankruptcy. This is a serious decision that will have a much bigger impact on your credit report, so should only be considered as a last resort.

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Credit Repair

Court judgments can be removed fast & effectively with credit repair. We can look into your file and see if credit repair is a possibility for you. If it is, then we will act on your behalf to remove your court judgments.

Sorting out the court judgment is the first step to getting back in control of your finances and clearing your credit file.

Can I still get finance?

If you have court judgments, then no traditional lender is likely to take you on. This doesn’t mean you don’t have other options available to you. There are lenders out there who will accept court judgments on your credit file. Of course, no matter what, you will be considered a high-risk borrower. For this reason, it is likely that you only qualify for secured loans.

A secured loan is when collateral is offered up against the loan. If you fail to meet the repayments, then the asset is seized by the creditor. It takes a large degree of risk away from the creditor, allowing interest rates to be kept lower.

An unsecured loan has no asset tied to it. This is a lot riskier to a potential lender, especially given your financial history. If you do go for this form of finance, expect it to come with higher interest rates.

It’s important to note that court judgments will affect your ability to take out a loan, even with a non-traditional lender. They may charge a much higher interest rate that could lead you straight down the path of debt again. Be sure to do your research and make sure you are able to pay back the loan.

How to avoid a default judgment

Court judgments result in a default judgment when you fail to respond. If you are looking to avoid a default judgment, there are some steps you can take to avoid it:

The removal process

Court judgments can be removed from your credit report. With the right expert help, you can clear it from your credit file and increase your chances of being able to take out a loan. Clean Credit are experts when it comes to removing negative listings on your credit report. You can speak to our credit repair team and find the best solution moving forward and clear the court judgment off your credit file. We can help to improve your financial situation and get you back on track to financial success. Simply get in contact today.

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