Judgments
A judgment is a court
order granting the creditor/plaintiff the
right to take action against you in order
to collect an outstanding debt. Once
the debt is settled, the judgment can be
rescinded by making an application to
court. If this isn't done, the listing will
stay on your record for five years.
Defaults
This means that you owed
money to a company or medical
practitioner, for example, and failed to
pay them. This listing normally stays on
your record for a period of three years.
CCA defaults
These are defaults
listed by companies that are members
of the Consumer Credit Association.
CCA members have agreed not to
remove a default, even when the
account is fully paid. The CCA and
their members claim they are justified
in pursuing this policy because you
have agreed to be listed if you fail to
pay your account on time.
Bank defaults
If you have one of
these listings it means that you failed
to pay money that you owed to a
financial institution. This listing stays
on your record for five years.
Collections
One of your accounts
has been handed over to an agency for
collection. This listing stays on your
record for three years.
Sequestration
If you are insolvent
and unable to meet your financial
obligations, a creditor may apply to the
court for a sequestration order against
you. This means that your assets will
be placed under control of a trustee,
who will convert them into cash for
distribution to the creditor(s). During
the period of sequestration, you will
have no legal capacity. During this
time, the trustee is also empowered to
take a portion of your earnings to pay
your creditor(s). A sequestration order
is effective for 10 years, buy you may
apply to the court for rehabilitation
within that period.
If you have been listed by a credit bureau for an unpaid debt, you have to go through a lawyer to have the listing removed, and this obviously comes with its own price tag. It can be a long road to full financial recovery, but it's better than the alternative: being denied access to finance for five years or more.
