A judgement determines the outcome of a court case. It is a legally binding decision issued by a court, establishing the rights, obligations, or liabilities of the parties involved. When individuals find themselves unable to meet their financial obligations, they may face a judgement due to non-payment of debt. In such cases, it is crucial to understand the implications and take appropriate action to resolve the situation hastily.

What Is A Judgement? 

A judgement is a court’s decision aimed at achieving a particular outcome. The court is responsible for evaluating the arguments and claims presented by both parties and delivering a resolution. Additionally, the judgement serves as a legally binding ruling that determines the rights, obligations, or liabilities of the parties involved in the case. The ultimate conclusion of legal action or a legal case is the judgement or court order.

When Would You Get A Judgement Due To Non-Payment Of Debt? 

After several months of arrears or missed payments, credit providers will initiate legal action. After failing to collect payment of the overdue debt, the creditor will summons the consumer to court. As a result of this, the consumer may receive a judgement, enabling the credit provider to pursue legal measures to recover the owed funds. In the event of a judgement, the consumer is obliged to address the matter seriously and respond appropriately to the credit provider’s actions. The credit provider can enforce payment of the credit agreement, compelling the consumer to take the necessary steps to resolve the situation. Moreover, it is important to note that a judgement can remain on a consumer’s credit report for up to five years if it remains unpaid. 

What Should You Do If You Have A Judgement On Your Credit Profile? 

When a judgement is reflected on a credit profile, it is essential for the consumer to proactively reach out to the credit provider and negotiate any payment arrangements to settle the outstanding balance. Moreover, it is crucial for the consumer to work towards bringing the account up to date. This entails promptly settling any accrued interest and clearing any arrears. Taking these actions demonstrates a commitment to rectifying the situation and improving the credit standing.

How Do You Remove A Judgement From Your Credit Report?

After the consumer has made full payment on their account, they are entitled to request the removal of the judgement from their credit report. It is the credit provider’s responsibility to remove the judgement entry from the consumer’s credit report. Moreover, the credit provider is given a specific timeframe of 7 days to eliminate the judgement once the account has been settled. 

If the credit provider fails to remove the judgement within this stipulated period, it is important for the consumer to initiate direct contact with the credit provider or file a complaint to address the issue. Taking such action ensures the accurate representation of the consumer’s credit history and resolves any potential discrepancies.

If You Are Missing Payments, Try To Seek Professional Help

If a consumer begins to struggle with making their monthly payments to credit providers, it may be advisable to seek professional assistance. Falling behind on repayments is a common occurrence when individuals become over-indebted, meaning they cannot meet their debt obligations while covering living expenses. Additionally, high levels of debt can exacerbate financial strain and pressure on the consumer.

To address the issue of over-indebtedness, consumers have two common relief options:

1. A Debt Consolidation Loan: This option involves obtaining a lump sum amount that consolidates smaller accounts, aiming to reduce high-interest accounts and simplify payments into a single monthly installment. However, strict industry criteria must be met for a consumer to qualify for a consolidation loan.

2. Debt Counselling: With debt counselling, a National Credit Regulator registered debt counsellor can assist the consumer in reducing their monthly installments and interest rates to a more affordable level. The debt counsellor negotiates with credit providers on behalf of the consumer to secure lower monthly payments. This process also presents an opportunity for the consumer to save money during the course of debt counselling.

These solutions provide avenues for over-indebted consumers to manage their debt more effectively and regain financial stability.