If you’ve got a court judgement on your credit file, you’re definitely not alone. In fact, thousands of Australians have gone through court judgements after falling behind on their loan repayments (as just one example). While we all have the best intentions when taking on a loan, sometimes there are circumstances beyond our control that result in us defaulting on payments.
Whether you’re hoping to obtain finance for a car, a home or a holiday, a court judgement on your file doesn’t necessarily mean that you won’t be able to obtain credit - it all just depends on your unique circumstances.
At Rapid Finance, we specialise in matching customers with the right lenders for their situation - whether you have an unpaid default, bad credit or just need a hand assessing your options.
What is a court judgement?
A court judgement happens when a creditor (which could be a lender) claims that you owe them money and therefore takes you to court. The judgement is a decision by the court that you are required to pay back the money. It is important to note that not all court judgements are previous loans. There are a range of financial items that go through the courts that could end up on your credit file.
This can happen if you fall behind on your payments to certain lenders, such as on your mortgage. Once a court judgement has been made, the creditor typically has 5 years to collect the judgement debt from you and you may also have to pay for their legal costs and the interest acquired.
Court judgements are automatically listed on your credit report (usually within 30 days) and can negatively impact your ability to obtain credit in the future. They remain on your credit report for generally five years.
There are two types of court judgement:
A judgement: This means that you might have a good reason for not repaying the loan and decide to talk to a lawyer about your situation. The court then decides the outcome. For example, this generally means defending the court summons and the court disagrees and enters judgement against you.
A default judgement: If you fail to speak to a lawyer and lodge a defence, the court will make a decision without you. In this case, you do not defend the court summons issued to you.
Appealing a court judgement must be done generally within 21 days of summons date.
How you can handle a court judgement
If you have been notified that a court judgement has been made against you, there are certain steps you can take:
Check with the court that there is actually a judgement against you.
Consider whether you might be eligible for an appeal - call Rapid Finance if you’re unsure (for general advice only).
Negotiate with the creditor to pay back the amount in full, offer a reduced amount to settle the debt, or organise a repayment schedule.
Make a plan to repay your debt.
Talk to a credit repair company to potentially get them to negotiate a deal that suits both parties – including the potential of having the judgement removed. Rapid Finance has a preferred, tested supplier. Talk to your consultant for further information
File for Part 9 debt agreement or bankruptcy as a last resort.
If you need help with court judgements, unpaid defaults, bankruptcy or general debt, there are several options out there. Rapid Finance are experts at helping those with bad credit - whatever your situation. In some cases, we can even look into your file to see if credit repair is an option for you - meaning we could act on your behalf to remove the court judgement. It’s important to note, that while Rapid Finance has a massive amount of experience, we are not legal or financial planners or advisors. Our role is to assist in the provision of credit assistance for a loan.
Can I still get credit if I have a court judgement?
Often, traditional lenders like banks will refuse to give you credit if you have a court judgement on your file. But you may still have options!
At Rapid Finance, we generally assist you if you have a combined judgement amount of $5,000 or less, or if you have been paying off the judgement for more than three months. If you can show that you are doing something about the unpaid balance, there is a high chance that we could help you, but, just like unpaid defaults, it depends on your circumstances overall. The only exception is car and home loan defaults – in this case, we can only assist if the car or home loan defaults have been paid in full.
On a side note, don’t forget about our wholesale cars. We offer a one stop shop to help you source a vehicle through our extensive wholesale network.
Through our network, we will do some extra checks on your behalf as well as inspecting the vehicle to ensure it’s a great vehicle.
We will also check :
There is no money owing on the vehicle
The vehicle has not been a repairable write-off
The vehicle has not in any serious accidents
We will check everything works on the vehicle
We will get the roadworthy for the vehicle
We will do a detailed inspection on the vehicle
Find out more info about our wholesale network vehicles.
We’ve helped thousands of customers looking for loans with unpaid defaults and have even helped those with a court judgement take steps to improve their credit score. Ready to take the next step? Call 1300 467 274 today to speak to our team of financial experts.