About judgment debt
If you owe money to someone (called a creditor), they can apply to the Magistrates’ Court for an order that the debt must be paid, for debts of up to $100,000. If a judgment has been made against you by a magistrate ordering that you pay a creditor an amount of money (called a judgment debt), interest will accrue at the penalty interest rate on top of the original debt. As of June 2023, the interest rate is 10 per cent per annum, but this is subject to change.
If a judgment has been entered against you and the debt remains unpaid, the creditor has the right to enforce payment of the debt. A judgment will only be enforced at the request of the creditor. Common forms of enforcement include:
- summons for oral…