How to have a judgement removed in South Africa

What is a judgement?

A judgement is a decision made by the court that has been put into public record. A judgement on your credit report can happen after a creditor has taken legal action against you based on unpaid debt. This can happen if you’ve skipped several months of paying your debt. 

If you are concerned that you will miss a debt repayment and that you may receive a judgement, we could assist you with a debt management process known as debt review. Let us give you a FREE call-back to answer any questions you may have about the process. 

When is a judgement granted against you?

A default judgment is granted against you when you fail to appear in court to defend a claim of unpaid debt put forward by a creditor. 

This should happen only after you’ve been served with a summons to appear in court. 

The process that needs to be followed for a judgement to be granted against you:

1. A creditor will usually contact the debtor if they miss a payment after a few days in an attempt to recover the funds or make an alternative payment arrangement. 
2. If the debtor (you) fails to adhere to a new payment arrangement or continues to miss payments, a creditor can issue a letter of demand (Section 129 Notice). 
3. If you still do not respond to this letter of demand, a creditor can approach a court to issue you with a summons.
4. If, after 10 days, you do not state that you intend to defend this claim or appear in court, a creditor can approach the court for application of a default judgement. 
5. If the court is satisfied with the argument put forward by the creditor, a default judgement will be granted against you. 
6. Once the judgement has been granted, it does not mean that the debt has been written off. You are still liable for the debt and a creditor may choose to recover the funds from you in a few different ways.

The different ways a creditor may get money for your unpaid debt after a judgement has been granted:

1. Warrant of Execution to repossess property, for example in the case of an unpaid bond, a creditor (the bank) may apply for repossession of your property.
2. Garnishee order
   • an application can be made to deduct an amount directly from the debtor’s salary. 

What happens when you get a judgement against you in South Africa?

How do I rescind a judgement in South Africa?

If you want to have a judgement removed from your credit report, you should meet at least one of the following criteria:

1. If you did not have any knowledge of the legal action that was taken against you and you have a valid defence to the debt (claim) that you have not raised yet.
2. If you’ve settled the debt. 
3. If the creditor agrees to rescinding the judgement against you. 

Once the court has rescinded the judgement against you, the credit bureaus then need to be contacted so that your credit report can be updated and the judgement removed. 

What happens to a judgement after 5 years in South Africa?

A judgement can be valid and stay on your credit report for 5 years or until the debt is paid in full.