A judgment stains your name

Don’t ignore a letter of demand or summons

Try to avoid a judgment at all costs. A judgment is when a court orders you to pay an outstanding amount and it will remain on your credit report for five years. If you pay the full amount owed before that time, the judgment will be removed from your credit report as soon as the credit bureau receives either proof of payment from the credit provider or a valid court order rescinding the judgment, according to Salem Dyafta, the brand manager at TransUnion.

The process leading up to a judgment and the attachment of your possessions to pay off a debt is as follows: 1. Letter of demand: You may receive a letter of demand from a creditor or attorneys acting for a creditor.

It must be sent by registered mail. Never ignore a letter of demand, respond to it within the time period provided or a summons can be issued.

2. Summons: A summons is

issued out of the court where you, the debtor, live or work. Once issued, the summons is sent to the sheriff for him to serve on you.

3. Default judgment: If the claim outlined in the summons is not settled within the time period provided in that summons and you do not express your intention to defend yourself, the creditor may apply for default judgment. 4. A warrant or writ of execution: If a default judgment is granted, a warrant of execution can be granted. This is an application to court to attach movable property – in other words, your personal possessions that can be removed, but not something that cannot be moved such as your land and your house or flat.

The sheriff then makes an inventory reflecting the goods that are under attachment and their valuation. The creditor can then instruct the sheriff to remove the goods and to arrange for them to be sold on auction.

Respond to it within the time period provided