Will you lend to me if there's a court judgment against me?

Why does a judgment worry lenders more than a default?

Because it shows a creditor didn’t just list the debt — they went to court over it, and the court agreed they were owed.

That extra step tells a lender two things: the amount was usually meaningful enough to be worth suing over, and the matter wasn’t resolved by agreement before it got there. The OAIC lists court judgments among the items that stay on a credit report for five years.

That doesn’t mean a lender won’t help. It means they’ll want the full story, and they’ll think carefully about how their loan is protected.

Paid versus unpaid — why it matters so much

	Paid (satisfied) judgment	Unpaid judgment
What it says	Dispute over, debt dealt with	Creditor still chasing
Risk to a new lender	Mainly historical	The creditor may enforce — possibly against assets the lender relies on
Typical path	Explain it; property security helps	Pay it out, often as part of the new loan
Unsecured options	Some lenders will consider an old, paid one	Very limited

An unpaid judgment is a live problem. The creditor can take enforcement steps, and costs can pile on. That’s why most lenders want it resolved — and why a property-secured loan that pays the judgment creditor directly at settlement is a common solution.

Which options are realistic?

Property-secured business loans from $20,000 to $5,000,000 — first mortgages, second mortgages and caveat loans over residential or commercial property. Credit issues, including judgments, are considered case by case. With sound equity and a clear exit, a lender may fund both the business need and the judgment payout.

Unsecured, cash-flow and line-of-credit options (typically $5,000 to $500,000) sized on turnover. A small, old, paid judgment with a strong business behind it might be considered by some lenders. An unpaid one is unlikely to be.

Have a judgment and a genuine business need? Tell us about both — 60 seconds, no credit check to enquire.

How should I explain a judgment?

Keep it short, factual and specific. A lender reads a lot of these. Something like:

“In 2024 a supplier sued the business over a $14,000 invoice we disputed because the goods were faulty. The court found in their favour. We paid the judgment in full within six weeks. We’ve since changed suppliers and added written acceptance checks on deliveries.”

That covers what happened, the amount, the outcome, and what’s different. Our guide on explaining your situation to a lender has a template you can adapt.

Personal judgment or company judgment?

If a judgment was entered against your company, it shows on the company’s commercial credit record. If it was against you personally — for example, as a guarantor — it shows on your consumer credit report. The OAIC notes that credit reporting laws mainly cover consumer credit information, with commercial credit information handled under the Privacy Act more broadly.

In practice, a lender dealing with a company will look at the company’s record and the directors’ personal reports, especially where directors are guaranteeing the loan.

An illustrative example

For illustration only; no real business is described.

A signage company has an unpaid $38,000 judgment from a former landlord over make-good costs after an early lease exit. The business is trading well and needs $150,000 to buy a large-format printer.

• Unsecured lenders decline because the judgment is unpaid.
• The owner’s home has good equity. A second mortgage is arranged for $190,000: the judgment creditor is paid directly at settlement and the balance funds the printer.
• The credit report is then updated to show the judgment as satisfied, which helps the next time the business borrows.

What if there’s more going on?

Judgments often travel with other issues — defaults, a bank decline, or a company that was liquidated. If that’s you, read those pages too, then tell us the whole picture in one go.

How do I find out what judgments are on my file?

Start with your own credit report. The OAIC says you can get it free once every three months from each credit reporting body, and it’s worth getting both, since they can hold different information. Look for:

• the creditor’s name and the amount — does it match your records?
• the date — judgments stay listed for five years;
• whether it shows as satisfied — if you’ve paid it and it’s not updated, ask for a correction.

If the judgment was against your company, the company’s commercial credit record is where it will show. Your accountant or a credit reporting body can help you obtain that.

Once you know exactly what’s there, you can:

1. Pay or settle an unpaid judgment if you can, and keep proof.
2. Get the listing updated once it’s satisfied.
3. Correct anything wrong — the OAIC explains how.
4. Prepare a short explanation for any lender.

If you’ve been knocked back already, our page on being declined by the bank is a useful next read. And if a judgment came out of a company collapse, see a previous company being liquidated.

Let’s look at it together

A court judgment can feel like a closed door. Often it isn’t — especially with property equity and a plan that deals with the judgment at the same time.

Asking us doesn’t involve a credit check, and your details won’t be sprayed around the market. A real person reads your situation and calls you back. Please be accurate on the form about the judgment — paid or unpaid, roughly how much and when — so we can point you to the right lender first time. Start your enquiry.