- Mar 27, 2018
Actually there is no need to go to court unless the defendant files a Notice of intention to defend with the claimant's attorney and the clerk of the court (for which it is best to use a lawyer).Summons > court > judgment > sherif arrives attach property > potential business liquidation.
If no notice of intention to defend is filed within 14 days of summons being served, a default judgment can be issued by the clerk of the court without the case being heard by a magistrate. Usually a Warrant of execution of moveable property is issued with the judgment. The Sheriff will then use the warrant to attach any goods he can find for sale in execution.
The default judgment is also registered with all credit bureaus by the court. Usually it is almost impossible to get any credit while there is an active judgment registered against you. To have it formally removed you would need to obtain the claimant's permission to have the judgment rescinded at the issuing court (which they will only give if the debt is settled in full. To get the rescindment you will also have to pay a lawyer to file it for you at the court. Only then can you send the rescindment order to the credit bereaus and they will remove the active judgment lodged against your name.
It means that nothing said during the negotions for repayment can be used against them to detract from their claim.What does the 'purely without prejudice part mean?
tldr Please reach a fixed and workable agreement asap as the alternatives are not pleasant.