If a court makes a judgment against you (the debtor) in a money dispute, you can ask the court to set aside the decision.
This is called ‘setting aside a judgment’, which means the decision is treated as if it never happened.
To do this, you need to apply to the same court that made the decision and include a sworn written statement (this is called an affidavit) explaining why it should be cancelled.
If the court thinks your request is reasonable, they’ll arrange a hearing to review it.
Grounds for setting aside
You can ask for a judgment to be cancelled if you have good reasons, like:
- you had already paid the debt or damages before the judgment
- you weren’t properly notified about the case and didn’t know it was happening
- the judgment was made by mistake or based on wrong information
- you have a strong defence that wasn’t taken into account
- the judgment was obtained through fraud or false information.
Which court will hear your matter
| Amount | Court |
|---|
| Up to $150,000 | Magistrates Court |
| Between $150,001 and $750,000 | District Court |
| Over $750,000 or complex cases | Supreme Court |
When to apply
There’s no strict deadline to apply to cancel a judgment, but it’s best to act quickly.
Delaying could harm your case, as the court might see it as a lack of urgency or seriousness.
How to apply
To request that a judgment to be set aside:
- Complete the required forms:
- File the original and two copies of each completed form with the court where the judgment was made.
- The court will schedule a hearing and give you two stamped (sealed) copies of your documents.
If you are using QCase to manage your matter, there is only a requirement for one set of documents, as the registry will return any service copies to the lodging party by email.
Serving the creditor
As the debtor, you must ensure the creditor receives a sealed copy of your application and affidavit.
These must be given to (‘served on’) the creditor at least two business days before the hearing, so they have time to review and respond to them.
If you don’t serve them on time, your case could be delayed or your application dismissed.
At the hearing
If the court thinks your application has merit, a hearing will be held.
Both you and the creditor must attend to present your arguments and evidence.
The court will then decide whether to cancel the judgment and possibly reopen the case.
On the hearing day, bring the original affidavit of service, which shows when and how you served the documents on the creditor.
If your application is successful
If the court agrees to set aside the judgment:
- The court will inform credit reference agencies that the judgment has been set aside.
- Follow any additional instructions from the magistrate or judge, such as filing other documents by the deadline. If you miss the deadline, the creditor could apply for a summary judgment against you.
What happens next
Once the judgment is set aside, the case will continue as if the judgment was never made. This may involve:
- you filing a defence to the claim
- the court scheduling a hearing or trial to resolve the dispute
- you and the creditor negotiating a settlement outside of court.
For creditors: Applying to have a judgment set aside
In most money disputes, it’s the debtor who applies to have a judgment set aside.
However, a creditor can also apply in certain situations, such as when the judgment was made by mistake or based on incorrect information.
The process and requirements for setting aside a judgment are generally the same for both debtors and creditors.
