A judgement will state that you have not paid your debt and it will reflect on your credit record for 5 years. When a judgement is granted, a creditor can apply for a warrant where the sheriff can attach goods such as your furniture and sell these to pay your debt.
A judgment is granted by the court when legal summons is issued and you fail to defend the summons or make payment of the amount claimed. A judgment remains on your credit record for 5 years or until it is paid in full or a rescission is granted by the courts.
Three years after a judgment expires, no writ of execution can be issued unless the debtor consents or unless the judgment is revived by the court on notice to the debtor (in which case no new proof of the debt is required) (Rule 66, Uniform Rules of Court).
If you can't afford to pay anything at all
You can ask the court to pause the order - this is called 'suspending' or 'staying' it. If the court agrees to suspend or stay an order, your creditor can't force you to pay - for example, they won't be able to send bailiffs to your home.
Once a court has granted judgment in a civil matter, there will be an accompanying court order which will be signed and stamped by either a magistrate, judge or registrar depending on where the matter was heard and the nature of how the matter was heard.
The default judgment allows the creditor or debt collector to collect the amount that you owe using various methods. If a motion for default on a debt is filed against you, you run the risk of having your wages garnished and your bank account frozen.
Does Debt Expire In South Africa? South Africa has a time limit of three years under its Statute of Limitation. debtors will have six months to pay the outstanding account, which is a maximum before summons have to be issued by the courts.
Though you cannot go to jail for debt, you can be imprisoned for owing money to SARS. If this is the case, you may also be without any other option than to find out how to declare insolvency in South Africa. Keep in mind that the sequestration process is in place to ensure creditors can receive the minimum benefit.
A court judgment, for example – where a court issues an instruction to you to pay an outstanding amount – will remain on your credit report for five years.
You need to make sure that you stick to the agreed repayment issued by the court. If possible, try to pay a bit more to speed up the repayment of the judgment account. Once paid up, you should go to the court in which the judgment was issued, with a paid up letter, and ask to get it removed from your credit report.
Judgments Don't Affect Your Credit Score, But Can Impact Your Application. Since judgments are not included in credit reports, they won't be factored into credit score calculations.
If the defendant does not reply to your claim, you can ask the court to enter judgment 'by default' (that is, make an order that the defendant pay you the amount you have claimed because no reply has been received). You should do this as soon as possible after the 14 days have passed.
If you ignore the letter or notice, the court will still issue the judgment but they won't be able to take your circumstances into account. They could, for example, order you to pay back the debt all in one go when it would be impossible for you to do so.
What happens if I ignore a CCJ? If you ignore a CCJ, it won't go away. It'll be recorded on your credit file for six years from the date it was issued, and you're at risk of further action being taken to recover the debt if you don't pay it. Ignoring a County Court judgment (CCJ) can cause problems for you.
Can you go to jail for not paying debt in South Africa? The kind of loan that you owe determines if you will go to jail for not paying it or not. If you refuse to pay your taxes or child support, for instance, you might be sent to jail.
A debt collector is not allowed to:
Use force or threaten to use force against you or your family. Physically threaten you or your family. Give, or threaten to give, information to the consumer's employer that may affect their opportunities as an employee. Serve any false legal documents.
So to answer your question whether you'll go to prison for debt — in short NO. We'll explain in a moment. There are different laws in South Africa that regulate the loan collection process. Debt collectors have certain limitations which they can't violate.
If you need to take a break, you can use this 11 word phrase to stop debt collectors: “Please cease and desist all calls and contact with me, immediately.” Here is what you should do if you are being contacted by a debt collector.
If the debtor has no property (movable or immovable) to sell to settle the debt the creditor may proceed with a financial enquiry in court. This is known as a Section 65A (1) Notice for the debtor to appear in the relevant court together with all his/her financial documents as proof of all income and expenses.
You are past-due, or delinquent, on your bills and your card issuer's collections representative calls you to pay your overdue balance. After about six months (depending on the lender), they will give up.
Negotiate With the Judgment Creditor
It's never too late to negotiate. The process of trying to grab property to pay a judgment can be quite time-consuming and burdensome for a judgment creditor.
If you don't go to court when you are supposed to, the judge can charge you with contempt of court and issue a warrant for your arrest. Ask the lawyer who subpoenaed you if you are eligible to apply for witness expense assistance.
You cannot appeal this kind of judgment and have a new trial until you “vacate the default judgment”, that is, until you have the judgment removed or erased. To vacate a default judgment, do the following: 1. Get the form called Notice of Motion to Vacate Judgment from the small claims clerk.