A court judgment on your credit file is one of the heavier marks you can carry. It can stop a home loan or a car loan in its tracks, and it stays for five years. The good news is there are clear steps you can take to have it removed. Whether they'll work depends a lot on one thing: is the judgment paid or unpaid? Let's walk through it.
A court judgment stays on your credit report for five years from the date of the judgment, even if you've since repaid the debt in full. Paying it is the right thing to do, but on its own it does not automatically wipe the judgment from your file. That surprises a lot of people, so it's worth taking active steps rather than assuming it will just fall off once you've paid.
It's also worth knowing the debt can outlive the listing. A judgment creditor generally has at least 12 years to enforce the debt, so a judgment dropping off your credit file doesn't mean the debt is gone.
Start with the creditor, meaning whoever obtained the judgment against you and who you owed the money to. Ask them to confirm in writing that you've paid them back and that the judgment debt is fully satisfied. Having that written confirmation is what lets you move to the next step, so get it in a form you can forward on.
Next, send that letter to the credit reporting body (Equifax / Experian) and ask them to remove the judgment from your record. For some bureaus, this step alone is enough and the judgment comes off. Others will simply add a note saying you've repaid the debt, and leave the judgment showing for the full five years. Some future lenders are fine with a "paid" note. Many still see the judgment itself and pull back. If the note isn't enough, you move to one of the two options below.
The cleanest path is for the creditor to agree to set the judgment aside. They do this by signing consent orders, sometimes alongside a Notice of Discontinuance, that say both parties agree to set the judgment aside and discontinue the proceedings. The creditor will usually know how to do this, and their lawyers file the orders with the court. Once the court makes the orders, the credit reporting body is notified and updates your file.
The catch is the creditor doesn't have to agree. Some, like the ATO and many councils, have policies that stop them from consenting. If they won't sign, you move to Option 2.
If the creditor won't consent, you can apply to the court yourself to set aside a default judgment (one made because you didn't file a defence in time). In the application, you generally need to address three things:
If the court sets the judgment aside, it can then come off your credit file. One thing to keep in mind: this set-aside path is for default judgments. If you actually filed a defence, went to court and lost, the usual option is an appeal instead, and appeals have very short deadlines. For a fuller walkthrough of these steps, this LegalVision article breaks the process down.
It depends on which step gets the result. If the bureau removes the judgment after you send the creditor's letter, the update can happen within a few weeks. If you need consent orders or a court application, it can take several months, since court applications involve filing fees, preparation and a hearing date, and busy registries can add delays.
Setting aside a judgment is a legal process, and you don't have to face it alone or pay a fortune. Free, independent financial counsellors at the National Debt Helpline (1800 007 007) can talk you through your options, and community legal centres can give free legal advice on set-aside applications and defences. Start there before paying anyone to "fix" a judgment for you.
We're not a law firm, so we won't run a court application for you. What we can do is check whether a listing is on your file in the first place, help you deal with the credit reporting bodies, and build the budgeting and credit habits that get you finance-ready once the judgment is resolved or drops off. If the real fix is legal, we'll point you to the right free help. As an Australian Credit Licence holder and AFCA member, we work within the same rules described here, and we're partnered with Ausloans Finance Group and Drive Approved for when you're ready to apply.
Not sure what to do about a judgment on your file? Book a free, no-obligation assessment and we'll help you work out your next step.
General advice warning: This article is general information only. It isn't legal advice and doesn't take your personal circumstances, objectives or needs into account, so consider your own situation and seek professional legal advice before acting. Perfect Score Pty Ltd | Australian Credit Licence 562270 | AFCA member.