If you do not respond to the summons or comply with it, the court will issue a default judgment against you. As a result, if the courts ruling goes against you, you may be ordered to pay a default judgement payment. Furthermore, the judgment payment allows debt collectors and creditors to take enforcement action in order for you to pay your outstanding debt.

• A default judgment is a debt collection procedure that results in a legal decision. As a consequence, your credit report will reflect the court’s unfavourable decision.
• Second, the court’s decision specifies that you must pay.
• Third, you may be ordered to pay legal fees if the court finds in your favour.
• The court will also apply strict time limits to the payment of the judgment debt.

Court judgment information listed on your credit file.

When it comes to results, a credit report and a credit default are similar. The court that heard the case, along with the complaint number, are recorded (court reference). The following excerpts from court rulings illustrate the situation:

• First and foremost, any outstanding or pending actions. As a consequence, court data in your credit report may indicate future credit issues.
• As a result, it is an indication that the lender may request more recovery, such as bankruptcy.
• Finally, if the loan is paid off in full by the end of five years, it will be valid for five years. It will endure for seven years if it isn’t repaid before the end of five years has passed.

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 are likely to be assessed a penalty if you do not pay this debt. If the document is accepted, you may then move on to the next step of attempting to negotiate a settlement in order to avoid further fees and interest charges. The court has ruled that you owe money, and hence a judgement has been issued.