How to ruin someone’s credit file Part 2

Ladies and gents, without further adieu I give to you the 2nd part of our “How to ruin someone’s credit file” series! Last time we discussed the difference between a Default and a Judgment. Both are listed on credit files, the Judgment being the much more serious of the two. A Judgment will stay on their credit file as a big black mark for 5 years. 5 long years. Now, how does this help you get paid? Good question! Basically you have 2 options- you can do nothing and simply wait for them to apply for any type of credit, at which time they will be declined because of your Judgment. The amount of debtors I have had come to me, months and years after vowing never to pay, tail between their legs, now begging to pay so they can have the Judgment removed would be in the thousands. It really is one of the most effective ways to get them to pay. And you literally don’t have to lift a finger. You just play the waiting game. Remember 5 years is a hell of a long time, and someones financial situation can change dramatically in that time. Your second option to get paid is to enforce the Judgment- generally you will have 6 years to do this. If your debt is more than $5000, you can bankrupt them. If your debt is more than $2000 and they are a Pty Ltd company, you can serve a Statutory Demand and apply to liquidate them. Remember, liquidation is to a company what bankruptcy is to a person. Other post-Judgment options include:

– Writ and Warrant of goods: Sheriff or Bailiff seizes goods to the value of the debt.
– Redirection of earnings or debt: Also called a Garnishee. If they work, you can take money from their pay. If they are owed money, you can take that money from them.
– Enforcement Hearing: They are dragged into court in front of a Magistrate to answer questions, under oath, about their financial situation. They are required to disclose EVERYTHING. Assets, liabilities, income, outgoings, the works. And if they don’t attend, you can have them arrested!

For those still wondering how any of this actually gets you your money- that’s easy- you just explain how horrible all of these actions are and remind them that they can avoid every single one- all they have to do is pay!


How to ruin someone’s credit file Part 2

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