What can you do once you receive a judgment? We got in touch with a leading credit bureau to find out.
2 November 2021 · Isabelle Coetzee
If you fall behind on your monthly debt payments for more than twenty working days, your creditors will be forced to take steps to ensure the debt is settled.
Firstly, you’ll receive a Section 129 Notice, which will inform you of your outstanding debt. If you don’t take any action, you’ll be served with a summons and thereafter a judgment will be issued.
But what can you do once this legal process has started? We got in touch with a leading credit bureau to find out.
Tip: If you’re struggling with your debt, you may be in need of debt counselling. Complete the form on this page to get the help you need.
According to Experian South Africa, once a judgment is granted, you should immediately take action.
“Contact the attorneys and make arrangements to settle the debt, in order to avoid the sheriff attaching movable or immovable property and selling it at an auction to satisfy the debt,” Experian advises.
Your creditor’s attorneys may also opt to attach your salary, Experian says. To enable the deductions, your employer must be informed of the situation.
“You can undergo debt counselling, even if you have a judgment, but you must be able to make some form of payment and have a stable income, no matter how little it is,” says Experian.
Judgments are never a good thing to have on your credit report. However, Experian points out that your credit report and score can still recover. The following points apply.
Experian has found that the majority of people who are unable to meet their credit obligations simply do nothing. This is very bad practice, and isn't recommended.
If you are overindebted, Experian recommends that you take the following actions.
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