WA Default judgement from magistrates court for debt

Discussion in 'Debt and Bankruptcy Law Forum' started by DailyWebClicks, 12 October 2019.

  1. DailyWebClicks

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    Hello my question is

    I have received a default judgement of $26,797.62 with interest the claim has included a fraud judgement also cost of default judgement which is around $250. The unsecured creditor has told me their intentions to declare me bankrupt.

    So my question is should I wait for enforcement in the courts as I am judgement proof and have no real assets and on centrelink as only income? Or should I declare bankruptcy before I am made bankrupt by the creditor and get a serious credit infringement on my credit rating?

    Second question is this debt still unsecured or has it become secured now that there has been default a judgement against me?

    Third question is will the courts send me documentation about default judgement including fee's and how does it work when creditor has asked the courts to decide how to treat the fraud claims?

    In summary I feel declaring bankrupt before creditor puts in a petition to make me bankrupt as there is interest on the amount owing and think its better to be bankrupt sooner than later as going to court for enforcement is going to be very stressful.

    Thank you
     
  2. SaulGoodman

    SaulGoodman Well-Known Member

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    I am sure you are aware however declaring bankruptcy is a very serious decision and shouldn’t be made without considering all alternative options. Bankruptcy will impact your credit rating for life - you will be recorded on the NPII permanently.

    To enforce the judgement there are several steps that need to be taken, the first will be a means enquiry where you will attend Court and they will discuss your assets and expenses etc. Then the creditor might choose to enforce the judgement by having your declared bankrupt by-way of a creditors petition.

    The debt is not secured and I am unsure what you mean when you refer to the ‘fraud’ claims. Can you provide more information?
     
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