What happens if someone does not pay a judgment debt?

• The court has a range of options if you do not pay a judgment debt. Some of these options carry more serious consequences than others:
  • you may have to go back to court and explain your financial position in which case you risk:
    • being declared bankrupt; or
    • having your company wound up.
  • the court can issue an order that your employer or your bank start making payments towards your debt either from your salary or other income; or
  • the court may make an order for some of your goods to be seized and sold to raise money towards repaying the debt.
• If the court has ordered you to pay the debt on an instalment plan and you miss 2 instalments you could be imprisoned for contempt of court. You would still need to pay the debt after your release.
• Remember that as long as the debt is unpaid you will be liable for interest on both the debt and any legal costs the creditor incurs.