How to Remove a Court Judgement from Your Credit File in Australia

The Letter You Weren't Expecting

You're sitting down to apply for a home loan. Or maybe a car. You've been saving, you've got a deposit, and you're finally ready. Then your broker calls. There's a court judgement on your credit file.

You didn't even know about it. Nobody told you. No letter, no court date, nothing. But there it is — a judgement from two years ago, for a debt you thought was settled. And now everything has stopped.

If this sounds familiar, you're not alone. It happens far more often than most people realise.

What Is a Court Judgement on Your Credit File?

A court judgement is a legal order confirming that you owe money to a creditor. It's different from a default. A default is listed by the credit provider directly. A judgement means the matter went to court — or at least, someone filed paperwork saying it did.

In Australia, court judgements are listed on your credit file by the credit bureaus — Equifax, Experian and Illion — and they remain there for five years from the date of listing. They're visible to any lender who checks your file.

The problem is that many judgements are "default judgements." That means the creditor went to court, you didn't show up (often because you didn't know about it), and the court ruled in their favour automatically.

Why Court Judgements Are So Damaging

A judgement is one of the most serious negative listings you can have. It tells lenders that not only did you fail to pay a debt, but legal proceedings were required to resolve it.

Most major banks will automatically decline a home loan application if there's an active judgement on your file. Even specialist lenders will charge significantly higher interest rates. We're talking tens of thousands of dollars more over the life of a loan.

And paying the judgement doesn't fix it. Paying changes the status to "satisfied," but the listing stays. Five years. Visible to everyone who looks.

Common Myths About Court Judgements

Myth 1: Once a judgement is on your file, it's there for good

Not true. Judgements can be challenged and removed if they were improperly obtained, if you weren't properly served with court documents, or if the listing on your credit file contains inaccuracies. Courts also have the power to "set aside" default judgements in certain circumstances.

Myth 2: Paying the judgement removes it

This is one of the biggest misconceptions. Paying a court judgement marks it as satisfied on your credit file, but it does not remove the listing. It still sits there for the full five-year retention period. Removal requires a separate process.

Myth 3: Only serious debts result in court judgements

Judgements can be obtained for relatively small amounts. We've seen judgements for unpaid phone bills, gym memberships, and utility accounts — sometimes for amounts under $1,000. The size of the debt doesn't determine the impact on your credit file.

Myth 4: You would definitely know if you had a court judgement

Not necessarily. If court documents were sent to an old address, or if a debt collector pursued action without properly notifying you, you might have no idea until you check your credit file. This is exactly why regular credit monitoring matters.

When Can a Court Judgement Be Removed?

Under Australian law, there are several grounds for having a court judgement removed from your credit file:

You weren't properly served

Before a court can enter a judgement against you, you must be properly served with the court documents. This means the documents must be delivered to you personally or to your current address. If they were sent to an old address, or if service was inadequate, the judgement may be set aside by the court.

The debt was already paid

If you had already paid the debt before the judgement was entered, the creditor should not have proceeded with court action. This happens more often than you'd expect, particularly when debts have been sold to collection agencies who don't have updated records.

The listing contains errors

Under the Privacy Act 1988 and the Credit Reporting Code, credit information must be accurate, complete and up to date. If the judgement amount is wrong, the date is incorrect, or it's been attributed to the wrong person, you have grounds to dispute the listing with the credit bureau.

The judgement was obtained by default

If a default judgement was entered because you didn't appear in court — and you have a legitimate reason for not appearing — you can apply to the court to have the judgement set aside. If the court sets it aside, the credit bureau must remove the listing.

A Real Scenario: How Mark Got His Judgement Removed

Mark was applying for a home loan when his broker flagged a court judgement from three years earlier. The judgement was for $2,400 — an old personal loan he'd completely forgotten about. He'd moved house twice since taking out the loan, and the court documents had been sent to an address he hadn't lived at for years.

He'd never received any notification. No default notice, no statement of claim, nothing. The first he knew about it was when it appeared on his credit file during the home loan application.

After a review of his credit file, it was clear the service had been inadequate. An application was made to the court to set aside the default judgement on the grounds that Mark was never properly served. The court agreed. Once the judgement was set aside, the credit bureaus removed the listing. Mark's home loan was approved six weeks later.

The Process for Removing a Court Judgement

Step 1: Get your credit file

Request your credit file from all three bureaus — Equifax, Experian and Illion. Identify the exact details of the judgement: amount, date, creditor, and court reference number.

Step 2: Obtain the court records

Contact the court where the judgement was entered and request a copy of the file. This will show whether you were properly served, what evidence was presented, and whether the judgement was entered by default.

Step 3: Assess your grounds

Based on the court records and your credit file, determine whether you have grounds to challenge the judgement. Was service adequate? Was the debt already paid? Are there errors in the listing?

Step 4: Take action

Depending on the grounds, you may need to apply to the court to set aside the judgement, dispute the listing directly with the credit bureau, or both. This is where professional assistance from a qualified court judgement removal specialist can make a significant difference.

What to Do Next

If you've discovered a court judgement on your credit file, the worst thing you can do is ignore it and hope it goes away. It won't. It will sit there for five years, visible to every lender, landlord and employer who checks your file.

The best thing you can do right now is request a free credit assessment. Our team at Australian Credit Solutions will review your file, identify whether the judgement is challengeable, and explain exactly what steps are available to you.

We're ASIC Licensed (ACL 532003), led by qualified lawyer Elisa Rothschild (BA/LLB), and we've been recognised with Industry Excellence Awards in 2022, 2023 and 2024. You're in experienced hands.

Elisa Rothschild

(BA/LLB)

Principal Solicitor & Director

With over 12 years of experience in credit law, Elisa has helped thousands of Australians remove unfair credit listings and rebuild their financial futures. She leads Australian Credit Solutions' legal team with a focus on consumer advocacy and regulatory compliance.

ASIC Licensed

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970+ Clients Helped

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