Monday, February 01, 2010 - Posted by Michael McCulloch
Default Judgment across the various States and Territories is almost identical. The only difference is the amount of time you must wait after service of the Statement of Claim before making the application for Default Judgment.
Obtaining Default Judgment does the following;
- Formalises the debt being owed by the relevant State or Territory;
- The Court will send notification to the Credit Reporting Agency to list Judgment against the debtors file; and
- Changes the way in which interest is calculated.
The interest calculation is changed to be that of the relevant Local Court. These are Simple Interest Rate calculations, which only calculate interest on the Judgment Debt (ie it does not compound). Any payments that are made must first be applied against the Judgment Debt, thereby reducing the future amount of interest that is allowable.