18 Jun Legal Options to Challenge a Default Judgment

While there’s no overnight fix for restoring your credit, there are legal steps you can take to remove judgments from your name, as you start rebuilding your finances. Dealing with a default judgment can be stressful, especially if you are caught off guard by the legal action or feel that it is unfair. Depending on your circumstances, there are different legal options to challenge a default judgment – let Cape Town Legal Consultants work with you to get it right.

A judgment on your credit report can have lasting consequences. It limits your ability to access credit, rent a property, or even secure employment in certain cases. It can take a while to get your credit score where you want it, and just a few wrong moves can result in a downward spiral – we’ve seen it many times. While judgments remain on your record for up to five years after settlement, they can be removed earlier, either by rescission or through satisfaction of judgment.

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Satisfaction of Judgment

This option is for paid-up judgments. Once you have repaid all the debt relating to the judgment, you are entitled to apply for it to be removed from your credit record through a process known as Satisfaction of Judgment.

The first step is to ask the relevant creditor (or their legal representative) to issue a letter (known as a satisfaction letter) that confirms you have paid back the full amount, including any additional fees. You will need to present this letter to the clerk of the court where the judgment was originally issued. Once you’ve done this, you can apply for and be granted with a rescission of judgment by the court.

When the updated court records reflect, inform the credit bureaus (such as TransUnion or Experian) and provide the court order or confirmation. Judgment removal can then commence. This means you’re on track and moving towards restoring your credit score.

Rescission of Judgment

If you believe the judgment was granted unfairly or you were not properly informed, rescission allows you to set aside or cancel the judgment. If you never received the summons or letter of demand (under Section 129 of the National Credit Act), or if you had a valid reason for not defending the claim, this is the better of the legal options to challenge a default judgment.

To initiate a rescission of judgment, you will need to apply to the same court that issued it, along with an affidavit explaining why you did not respond in time. If you plan to settle the debt, you can mention that too. The court will look at your reasons and, if they believe you were treated unfairly or didn’t get a proper chance to defend yourself, they may choose to set the judgment aside. Understand that judgment removal is key to restoring your financial freedom.

There are legal requirements to keep in mind when applying for a rescission of judgment, and time frames that must be followed. Once rescinded, you can submit the court order to credit bureaus to have the judgment removed from your credit report.

CONTACT US today to discuss and action the legal options to challenge a default judgment. Let our legal team assist you with the steps to clear your name from ITC records.