The total amount that the court orders you to pay, including your original debt plus costs and interest, is known as a ‘judgment debt’. A creditor generally has 15 years to take action to enforce a judgment debt.
A judgment debt gives the creditor the right to apply to the court for the following orders, to try to make you pay:
- summons for oral examination
- instalment order
- attachment of earnings
- attachment of debt
- warrants of seizure and sale
- warrant to sell your house.
A creditor may also give you a bankruptcy notice if you owe more than $10,000. If you then don’t pay, the creditor can issue a creditor’s petition, and seek a sequestration order, making you bankrupt. A creditor has 6 years from the date of your…