Having a judgement against your name can be an extremely stressful and damaging experience. It can negatively impact your ability to get credit, find employment, rent property and lead a normal life. But just how long does a judgement stay on your record in South Africa? And what can you do about it? This comprehensive guide provides all the details you need to know.
What Exactly is a Judgement?
A judgment is a court order that someone who owes money must follow. It gives the creditor the legal right to get the money back. Usually, a creditor sends a letter of demand and summons for non-payment of debt before a judgment is made.
The court tells the creditor to report the judgment to the credit bureaus once it is made public. This is a very bad mark on the debtor’s credit report that might last for years.
How Long Do Judgements Last in South Africa?
People in South Africa can be held responsible for a civil judgment for up to 30 years after it was made. However, it will only stay on your report for 5 years.
Here is a breakdown of the timelines
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Enforceable: A judgment is valid for 30 years from the date it is issued. This means that the creditor has up to 30 years to use the law to get the money back.
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Credit record impact: Although enforceable for 30 years, a judgement will only show on your credit record for 5 years. After this time, credit bureaus are required to remove it.
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Early settlement: If you pay the judgement amount in full before the 5 year mark, you can request to have it removed early from your credit record. This requires providing proof of settlement to the credit bureaus.
Why Do Judgements Last So Long in South Africa?
There are a few key reasons why judgements have such long-lasting consequences in South Africa:
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Deter debt avoidance: The 30 year enforceability aims to deter debt avoidance and non-payment. It gives creditors power to recover debts for decades if necessary.
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Promote creditor rights: Long enforceability promotes creditor rights to receive payment. This ensures people who lend money can ultimately recover it.
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Motivate repayment: A 30 year judgement creates an incentive for debtors to prioritize repayment. Defaulting has long-term financial implications.
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Obligate honoring agreements: Long enforceability obligates debtors to honor their legal financial agreements and debts for decades to come.
Overall, the lengthy lifespan of judgements aims to promote debt repayment, honor contracts, and prevent defaulting without consequence.
How to Remove a Judgement Early
If you have a judgement against you, the best course of action is to repay it as soon as possible. This will limit the damage to your credit record and finances.
Here are some tips for removing a judgement ahead of the 5 year mark:
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Pay in full: Settling the full outstanding amount is the fastest way to remove a judgement. Send proof of payment to credit bureaus.
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Negotiate settlement: You may be able to settle for less than the full amount. Get this deal in writing first.
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Use your assets: Consider liquidating assets to raise funds for repayment and removal.
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Debt counseling: Work with a debt counselor to budget, consolidate debts and structure affordable repayment.
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Credit report disputes: You can dispute inaccurate info on your credit report including paid judgements.
The sooner you can pay off the judgment, the faster you can restore your credit status and put it behind you. This limits the harm to your finances in the long run.
Does Paying a Judgement Improve Your Credit Score?
Paying off a judgement will definitely start to improve your credit score over time. Here’s how:
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It removes the record of non-payment from your credit history.
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It demonstrates financial responsibility to credit bureaus.
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It stops further damage from enforcement actions.
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Your score will gradually improve as the judgement ages off your report.
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New positive accounts and payments will offset the past default.
So paying off judgements prevents your score dropping further. And it puts you on the path to credit repair and rebuilding. Over time, your score will recover. But it takes consistency with payments, low debts, and wise use of new credit.
Do Old Judgements Still Affect Your Credit Score?
Judgements over 5 years old will no longer show on your credit report. However, they can still indirectly impact your credit score in some cases. Here’s how:
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Enforcement actions like asset seizures arising from an old judgement will show as new defaults if you can’t pay.
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Court records of decades-old judgements may still be accessible to lenders doing background checks.
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Future inability to pay other debts can be tied to past judgment history.
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Consumer behaviors and habits that led to the old judgment may persist, leading to new issues.
So while judgments officially fall off credit reports after 5 years, their legacy can continue shaping your finances and creditworthiness for many years beyond.
Strategies for Rebuilding Credit after a Judgement
Recovering from a judgement takes time and disciplined credit habits. But here are some strategies that can help:
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Pay all current debts on time, especially secured loans. This builds a pattern of responsibility.
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Keep credit card balances low. High utilization drags down scores.
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Mix types of credit – mortgages, credit cards, car loans etc.
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Only take on new credit you can manage – avoid new defaults at all costs.
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Write goodwill letters to ask creditors to remove defaults over 2 years old.
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Dispute any inaccurate outdated information on your credit reports.
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Consider credit counseling to get expert guidance on improving your situation.
Rebuilding credit requires patience and perseverance. But taking positive actions will steadily improve your score and financial reputation over time.
A judgement can have devastating long-term consequences on your credit profile and finances. But through early repayment, credit rebuilding strategies, and responsible money management, you can repair the damage over time. Seeking help from credit experts and counseling services can also aid your recovery.
The key takeaways are:
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Judgements stay enforceable for 30 years in South Africa.
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They impact your credit record for 5 years.
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Repay judgements ASAP to limit credit damage.
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Credit scores gradually recover through diligent rebuilding tactics.
While judgements have lasting impact, they don’t have to ruin your financial life forever. With dedication and support, you can overcome credit challenges and restore your status for a brighter future.
Take the following course of action if you have received a judgment:
- Make preparations to start paying off the arrears account. Cut back on your expenditure and pay as much as possible towards this debt.
- Find out if the attorneys can negotiate with the credit provider, or arrange an alternative repayment plan.
- If neither of these are possible, seek debt counselling help. This may be an option for you if you have a lot of bad debt. It’s important to note that if you are under debt counselling before a judgment is taken, the credit provider has to stay the proceedings and can’t take legal action.
- If you manage to settle the judgment debt, obtain a settlement letter referencing the case number and submit it to the credit bureaus. The judgment will then be removed from your credit profile.
“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.
Steps to take after receiving a judgment
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.
[L240] RESCISSION OF DEFAULT JUDGEMENT AGAINST YOUR NAME| SOUTH AFRICA
FAQ
What happens after 5 years of Judgement?
A judgment lien is only valid for 5 years from the date it was recorded, but it can be recorded again for another 5 years up to 120 days before the first judgment expires.
How do I remove a judgement from my name in South Africa?
Rescission If judgement was granted against you or your company for a monetary amount and this amount has since been paid up, you may approach a court for rescission of this judgement either by consent of the other party or unilaterally approaching a court indicating that it has since been paid up.
What happens to unpaid debt after 5 years in South Africa?
Prescribed debt in South Africa Most common debts prescribe after either three, six, or thirty years. This is known as the prescription period. Think of it as the time it takes for the debt to ‘expire’. Debts that can become prescribed include credit card debt, personal loans, retail accounts, and cell phone contracts.
Does a Judgement fall off after 7 years?
How long does a judgment stay on your credit report? A judgment can remain on your credit report for seven years from the date it was originally filed. Apr 24, 2025.