What does a court judgement have to do with my credit report?
As a result, if the court decision is against you, you may be required to pay a default judgement payment. Furthermore, the judgment payment allows the creditor or debt collector to take enforcement action to get you to pay your obligation.
- A default judgment is a debt collection procedure that results in a judgment. As a result, your credit file will reflect the court’s negative outcome.
- Second, the court’s decision states that you must pay.
- Third, you might be ordered to pay legal fees.
- The court will also apply time limits to the payment of the judgment debt.
Court judgment information listed on your credit file
A credit report indicates the same thing as a credit default when it comes to outcomes. However, the court type and plaint number are noted (court reference). The following excerpts from court judgments reveal this:
- First and foremost, current and pending actions. As a result, court data in your credit report may predict future credit difficulties.
- As a result, it is an indication that the creditor may seek additional recovery, such as bankruptcy.
- Finally, if the loan is paid in full before five years have passed, it will last for five years. If it isn’t paid off by then, on the other hand, it will endure for seven years.
Typical Court Judgements we see 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
- You will be fined if you do not pay this debt. If the paper is validated, you may continue to the next stage of attempting to bargain a settlement in order to avoid any additional fees and interest charges. The court has determined that you owe money, therefore a judgement has been made.
At some point in your life, you may come across a default or negative listing on your credit report and will need to remove a court judgement. A credit default or adverse information on a credit file can impact your ability to move forward with a finance application. That is why a service like ours at Clear Credit Solutions is vitally important. Clear Credit Solutions can assist in helping remove any adverse listings from a credit report in Australia. That way there is nothing stopping a finance application from proceeding.
However, not all listings can be removed from a credit report. Only some listings can be removed and checking your file first along with a follow up phone call or enquiry to Clear Credit Solutions is best practice. Our friendly team can assist with any enquiries from client’s or brokers about adverse credit defaults or information.
Along with a team of friendly staff, we at Clear Credit Solutions are the proud winners of the Product Review Award for Best Credit Repair Company in Australia for 2020, 2021, 2022, 2023. We have a range of useful articles like this one about court judgement to assist you.