A judgement debt is a debt that has essentially been ordered and approved by a court. If someone has obtained a judgement debt against you they are a judgement creditor and are at liberty to enforce the ordered amount.
A judgement creditor is entitled to commence enforcement proceedings against you, this can include seizing and selling your property or garnishing your bank accounts.
If you do not dispute the judgment debt but are simply unable to pay at the moment you can file an application with the court to pay the judgement debt by instalments.
This is a set form that you file with the Court to have a particular payment arrangement approved by the Court. In the Court form you will have to disclose your financial position to prove why you are unable to pay the judgement debt in a lump sum. If the Court approves the payment arrangement it is important to adhere to that regime or the judgement creditor will be entitled to re-commence enforcement proceedings against you for the outstanding balance.
Once you become aware that a judgement debt has been entered against you it is important to move immediately to obtain legal advice.
If you have further questions, please contact us at frank@franklaw.com.au.
This is not legal advice.