Here are three reasons to apply to have it set aside:
1. A default judgment is an order to pay money
If the order isn’t set aside, you will have to pay it. If you don’t pay it straight away, the claimant may decide to take enforcement action against you. This could include:
- the removal of some of your goods
- money being deducted from your salary and paid to the claimant
- a charge being registered against your house
The longer you take to pay it, the more interest you’ll have to pay, too. The claimant’s legal costs will usually be added as well.
So, the whole experience could be very costly indeed!
Even if you’ve begun your application to set judgment aside, the claimant can still take enforcement action, although often they will agree to suspend the action until the outcome of your application.
2. Your credit rating is harmed
If a court makes an order requiring you to pay money, the details are sent to the Registry Trust. They then notify credit reference agencies, such as Experian or Equifax. Your credit rating will inevitably suffer as a result.
Even if you pay the amount ordered, the default judgment remains on your file. It’s marked as satisfied but it won’t be removed for six years.
Many organisations will not offer credit to anyone who does not have a perfect credit rating, which means you could be prevented from obtaining a mobile phone contract, a loan, a mortgage on a property etc
3. Your employment prospects may be jeopardised
In some industries, employers won’t employ anyone with a default judgment entered against their name, even if it has been paid. This is particularly true in the finance or accounting sector where they expect their staff to have a completely clean credit record.
Unless the order is set aside, you may find that you’re prevented from pursuing your career.