After receiving a judgment, what steps can you take? We spoke with a top credit bureau to find out.
Your creditors will have to take action to make sure the debt is paid off if you miss more than twenty working days in a row with your monthly payments.
Firstly, you’ll receive a Section 129 Notice, which will inform you of your outstanding debt. If you do nothing, a summons will be served to you, and a judgment will then be rendered.
However, once this legal process has begun, what can you do? To find out, we spoke with a top credit bureau.
Tip: If you’re struggling with your debt, you may be in need of debt counselling. Complete the form on this page to get the help you need.
A judgment is a court order that legally compels you to pay a debt. In South Africa a judgment can remain on your credit report for up to 5 years, even if the debt has been settled. This can have a significant impact on your ability to obtain credit as lenders will be less likely to approve your application if you have a judgment on your record.
How Does a Judgement Get on Your Name?
A judgment can be issued against you if you fail to pay a debt and the creditor takes legal action against you. This typically involves the creditor obtaining a summons from the court and serving it on you. If you do not respond to the summons or appear in court a default judgment will be issued against you.
How Long Does a Judgement Stay on Your Name?
A judgment will remain on your credit report for 5 years from the date it was issued, or until it is paid in full or rescinded by the court. If you pay the judgment in full, the creditor is required to notify the credit bureaus so that the judgment can be removed from your credit report.
How to Remove a Judgement from Your Name
There are a few ways to remove a judgment from your name:
- Pay the judgment in full. This is the most straightforward way to remove a judgment from your credit report. Once the judgment is paid, the creditor is required to notify the credit bureaus so that the judgment can be removed.
- Get the judgment rescinded by the court. This can be done if you can show that the judgment was issued in error, or if you have reached a settlement with the creditor.
- Wait for the judgment to expire. After 5 years, the judgment will automatically expire and be removed from your credit report.
How to Avoid Getting a Judgement
The best defense against a judgment is prompt payment of your debts. Get in touch with your creditors right away to talk about your options if you are having trouble making your payments. It might be possible to work out a payment schedule or settle the debt for less money.
What to Do if You Have a Judgement on Your Name
If you have a judgment on your name, it is important to take steps to remove it as soon as possible. This will improve your credit score and make it easier for you to obtain credit in the future.
Here are a few things you can do:
- Contact the creditor and discuss your options. You may be able to negotiate a payment plan or settle the debt for a reduced amount.
- Get legal advice. A lawyer can help you understand your options and guide you through the process of removing the judgment from your name.
- Contact a credit counselor. A credit counselor can help you develop a plan to manage your debt and improve your credit score.
A judgment can have a significant impact on your credit score and your ability to obtain credit. If you have a judgment on your name, it is important to take steps to remove it as soon as possible. By following the tips above, you can improve your credit score and make it easier to obtain credit in the future.
Steps to take after receiving a judgment
According to Experian South Africa, once a judgment is granted, you should immediately take action.
“Get in touch with the lawyers and arrange a settlement to avoid having the sheriff seize your property and sell it at auction to cover the debt,” Experian suggests.
Your creditor’s attorneys may also opt to attach your salary, Experian says. To enable the deductions, your employer must be informed of the situation.
Take the following course of action if you have received a judgment:
- Make preparations to start paying off the arrears account. Reduce your spending and make as much of a payment as you can on this debt.
- Find out if the lawyers can work out a different repayment schedule or negotiate with the creditor.
- If neither of these are possible, seek debt counselling help. If you have a lot of bad debt, this might be a possibility for you. Important to remember is that the creditor is required to halt the process and cannot pursue legal action if you are receiving debt counseling prior to a judgment being rendered.
- If you are successful in paying off the judgment debt, get a settlement letter that includes the case number and send it to the credit reporting agencies. The judgment will then be removed from your credit profile.
“Even with a judgment, you can still participate in debt counseling; however, you need to be able to pay back your debts and have a steady source of income, no matter how small,” according to Experian.
[L240] RESCISSION OF DEFAULT JUDGEMENT AGAINST YOUR NAME| SOUTH AFRICA
FAQ
What happens after 5 years of judgement?
How long does bad debt stay on your name in South Africa?
Is it true that after 7 years your credit is clear?
What is a judgment in South Africa?
A judgment is a legal ruling that occurs when a creditor or service provider acts against a borrower for unpaid debts. While defaults can remain on a credit report for one year and judgments up to five years in South Africa, their real-life implications are far reaching.
How long does a judgment stay on your credit report?
A judgment usually stays on your credit report for a period of 5 years. However, once the judgment has been paid up it can be removed from the consumer’s credit report. Up until March 2019, judgments needed to be rescinded in order to get them removed from the credit report.
What happens if a judgment is issued against my name?
If a judgment is issued against your name, you will soon notice its impact on your credit score. We have a look at what a judgment is, and we consider the steps you should take to have this officially removed from your credit report.
How do I know if a judgment reflects on my Name?
According to Brendan Michie, director and attorney at Hammond Pole, if a judgment reflects against your name, the first step is to get a copy of the credit bureau report reflecting the judgment. “This search would normally indicate the court in which the judgment was granted, and the case number.