What is a default judgment and how does it work?

Ever forget to (or couldn’t) pay outstanding debt?

It might’ve led to a default judgment. And now, it’s doing damage.

In this post, we’ll explain everything you need to know about default judgments.

Let’s get started.

 

Default judgement

Basically, if you ignore the legal notice about a debt, the court can rule against you automatically.

Here are the details.

 

What is a default judgment?

A default judgment is a court order that allows a creditor to recover unpaid debt when a person doesn’t respond to a legal notice or appear in court.

This order gives the creditor permission to take steps like deducting money from the person’s salary or taking assets. It also appears on the individual’s credit report, which can make it harder to get loans, rent housing, or secure certain jobs.

 

How does it work?

If you owe money and the creditor takes legal action, they’ll send you an S129 notice, followed by a summons. If you ignore both and don’t respond within 10 business days, the creditor can go to court and ask for a default judgment. Once the judgment is granted, the creditor can legally collect the money through actions like deducting it from your salary (garnishee order) or by repossessing and selling your property (like a car or home).

Essentially, a default judgment happens when the court rules in favour of the creditor because the debtor didn’t respond or show up.

⭐ Related content: How debt collection works

 

 

What happens after a default judgment?

Once a default judgment is granted, the creditor can take legal steps to recover the money that’s owed. This can include taking money directly from the person’s salary (called a garnishee order) or seizing valuable items, like furniture or a car.

The judgment also shows up on that person’s credit report and stays there until it’s paid off and officially removed by a court. While it’s there, it can make it much harder to get a loan, rent a place to live, or even pass certain job checks.

Because the judgment is now legally enforceable, the creditor can apply for documents like a warrant of execution to claim assets or continue with other collection actions. It’s also flagged by credit bureaus, which brings down the person’s credit score.

It opens the door for the creditor to take your stuff—or your salary—to get what they’re owed.

(No thanks! Right?)

 

How long does a default stay on your credit report

A default judgment stays on a credit report for five years, starting from the date the judgment was issued. After this period, credit bureaus are required by law to remove the listing automatically, even if the debt hasn’t been paid.

Here’s the law:

National Credit Act (NCA) 34 of 2005, Regulation 17(1)(e):

“Civil court judgments: five (5) years or until the judgment is rescinded by a court or abandoned by the credit provider in terms of section 86 of the Magistrate’s Court Act, 1944 (Act No. 32 of 1944), whichever occurs sooner.”

However, if the debt is paid off sooner and the individual wants the judgment removed before the five years are up, they can apply to the court for a rescission of judgment. This requires a consent letter from the creditor and a formal court application. Once the rescission is granted, the court order must be sent to all major credit bureaus to have the listing removed.

⭐ Related content: After how many years is debt written off in South Africa?

 

 

How to look up judgments against yourself

You can check for judgments against your name by requesting your credit report from a registered credit bureau or by using a credit reporting app. Try My Score Hero, TransUnion, or Experian.

Every South African can get one comprehensive free credit report per year from each bureau. While My Score Hero’s app offers unlimited free reports. Credit reports show any civil judgments, including the court that issued it, the creditor’s name, and how much is owed.

Ways to look up judgments:

• Request your credit report online
• Visit your local Magistrate’s Court with your ID to check if any judgments are listed under your name.
• Check with legal service providers (optional, usually at a cost—if you want professional help) 

That’s step one.

If you have a judgment against your name, then this next part covers steps two, three, and four.

 

How to remove judgment from a credit report

A judgment can be removed from a credit report after the debt is fully paid, whether it’s paid directly or recovered through legal action like salary deductions or repossession.

Once the debt is settled, the next step is to apply to the court to have the judgment cancelled. To do this, get a letter from the creditor confirming that the debt has been paid. Then, use that letter to apply for a rescission of judgment at the court.

If the court approves it, send the court order to the credit bureaus so they can take the listing off the report.

Here are the ‘steps’:

1. Settle the full amount of the debt (either directly or through legal action)
2. Request a paid-up or consent-to-rescind letter from the creditor
3. Submit a court application for rescission
4. Send the court order to all credit bureaus for removal

 

Even if the debt has been paid—either by choice or through enforcement—the judgment won’t disappear on its own. It stays on the report for five years unless the person takes legal steps to remove it sooner. Which means it could impact things like getting credit, getting approved to rent a home, or even deny you a job.

 

Final thoughts

A default judgment isn’t a joke. It could cost a lot of money and ruin the person’s financial reputation for a long time.

Before it is too late, anyone who is missing payments or getting creditor calls needs to take steps to protect themselves.

Debt counselling can help—the process offers legal protection and a way to make debt more affordable, so the problem can be taken care of.

Ignoring debt problems doesn’t work. It only makes things more expensive in the end.

If you want a solution. Talk to our team at My Debt Hero. We can help.