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What is a Court Judgement on Credit Report?

What is a Court Judgement on Credit Report?
Court Judgements listed on your credit report indicate a legal action, and a decision ruled against you by a court.  If you are served with a Statement of Claim by either court mail to your address or served in person you have 28 days to respond with a defence. if you ignore the claim, after 28 days the Plaintiff can file for a ‘Default Judgment’. This is a decision made in your absence.
As such, the court case would be a result of a financial dispute between yourself and a creditor. Hence, the court outcome would incur a default judgement against you. This will show up on your credit report under the ‘public record’ section or as a ‘court action’
Court Judgments may make it difficult for you to obtain credit or you may have to pay a higher interest rate on any credit you get. The Court Judgment will remain on your credit report for 5 years from the original date of the Court Judgment.
The Court Judgment will remain on your credit report for 5 years from the date of the Judgment. A Judgment Creditor has at least 12 years (or 15 years in South Australia and Victoria) to take further action to recover the debt from you.  So just because a Court Judgment no longer appears on your credit report does not mean the debt is no longer owing.

An issue that often arises for parties to legal proceedings is the recording of Court Judgments.  A Court Judgment can be made by a Court making a decision following a contested hearing or alternatively a judgment by consent.  As the Court judgment is a matter of public record a credit reporting provider can source the information from public records to record on personal credit files.  Often information contained on the public record is not complete or does not represent the entirety of the circumstances. We Fix Credit provides an advocacy service without the hefty legal bills to resolve these matters on your behalf. We Fix Credit provides credit fix solutions and a quality credit repair service for all your credit repair requirements.

Often the only circumstances in which a Judgment Debt will be removed from a credit report is if the judgment is set aside, either by consent or an application to the Court.  It is often difficult to get the Judgment Creditor to agree to set aside a judgment by consent, and the Court will only set aside a Default Judgment in certain circumstances.  The fact that may have paid the Judgment Debt, is not a ground to set aside a Judgment.

The reality therefore in most situations is that a Judgment debt remains recorded on a credit file.  This should be a factor that is considered by all parties in Court proceedings. We Fix Credit can remove Court Judgments from your credit file in most circumstances. We have an efficient and cost-effective process in removing these matters from your credit report so that you may move forward with your life and improve your credit score and credit worthiness.

Here are key points about Court Judgments and their implications on credit:

  • Nature of Court Judgment: A Court Judgment arises from a creditor taking legal action against you for an outstanding debt. If you are served with a Statement of Claim and do not respond within 28 days, the creditor can apply for a Default Judgment.
  • Impact on Credit Report: Court Judgments are recorded under the ‘public record’ section of your credit report. This notation can negatively affect your ability to obtain credit, possibly resulting in higher interest rates or denial of credit applications.
  • Duration on Credit Report: A Court Judgment remains on your credit report for 5 years from the date of the Judgment, impacting your creditworthiness during this period.
  • Debt Collection: Despite the Judgment no longer appearing on your credit report after 5 years, creditors typically have extended periods (12 to 15 years in different states of Australia) to pursue debt collection actions against you.
  • Challenges in Removing Judgments: Removing a Court Judgment from your credit report can be complex. It usually requires the Judgment to consent or through a court application, which might not always be feasible and can be difficult to navigate.
  • Credit Repair Service:  We Fix Credit offer services to assist in addressing Court Judgments on your credit report. They aim to resolve these matters efficiently and cost-effectively to improve your credit score and creditworthiness.
  • Considerations for Court Proceedings: Parties involved in legal proceedings should be aware of the long-term implications of Court Judgments on credit reports and creditworthiness.
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