Satisfaction of Judgment NSW: How to Record a Judgment as Paid

Why You Need to Formally Close a Judgment

When the debtor pays the full judgment debt — including post-judgment interest and recoverable enforcement costs — the judgment does not automatically disappear from court records. The creditor is responsible for formally recording that the debt has been satisfied. Until you do, the judgment remains unsatisfied on the court file.

Failing to record satisfaction promptly can also create legal complications. If the debtor can show the debt was fully paid and you continued enforcement actions or failed to acknowledge payment, you may face costs orders or other consequences.

How to Record Satisfaction in the NSW Local Court

The process has two steps:

Step 1: Confirm the full amount has been received. Add up all payments and confirm they cover the original judgment debt, all accrued post-judgment interest (at the statutory rate under UCPR Rule 36.7, currently 10.35% per annum, from the date payment is due under the order or the order date if payable immediately), and all recoverable enforcement costs (registration fees, motion fees, writ fees, Sheriff execution fees). The judgment is not satisfied until every component is paid.

Step 2: Record satisfaction. Contact the Local Court registry where the judgment was registered and follow its current instructions for recording that the judgment has been paid in full. The court updates its records to show the judgment is satisfied.

What Counts as "Full Payment"

The judgment is satisfied only when every recoverable dollar has been paid:

• Original judgment amount — the sum ordered by NCAT
• Post-judgment interest — calculated from the date payment is due under the order (or the order date if payable immediately) at the statutory rate, running until the date of final payment
• Court filing fees — the $121 registration fee, any motion fees ($114 each), and other costs added during enforcement
• Sheriff execution fees — if a writ for levy was issued, execution costs are $111 per address and attempt, plus 3% of proceeds
• Any other costs — ordered by the court during enforcement proceedings

If the debtor pays slightly less than the full amount — even a few dollars short — the judgment remains unsatisfied. Make sure both parties agree on the exact final figure before accepting a payment as settlement.

What If the Debtor Pays in Instalments

If the debtor has been paying under an instalment order, satisfaction occurs when the final instalment brings the running total to the full amount owed. Interest continues accruing on the declining balance throughout the instalment period, so the final payment may be slightly more than a simple division of the original debt would suggest.

Use a running ledger to track each instalment, the interest accrued between payments, and the remaining balance. When the balance hits zero, file satisfaction immediately.

The Debtor's Right to Request Satisfaction

A debtor who has paid in full can request that the creditor file satisfaction. If the creditor unreasonably refuses or delays, the debtor can apply to the court for an order directing the creditor to file the notice. This protects debtors from creditors who might use an unsatisfied judgment as leverage after the debt is genuinely paid.

Clearing Credit Records

Only judgments arising from credit provided or applied for can be included in a credit report. If reported, judgment information can remain for five years from the judgment date even after payment; the credit report can show that the judgment was satisfied.

Recording satisfaction promptly is not just a legal obligation — it is the right thing to do once the debt is cleared.

Keeping Records After Closure

Even after filing satisfaction, keep your records: the original NCAT order, the Section 78 certificate, the Local Court registration, all enforcement documents, payment receipts, and a copy of the satisfaction notice. Store them for at least seven years. If any dispute arises about whether the debt was fully paid, these records protect both parties.

Our NCAT enforcement guide covers the entire process from NCAT order to final satisfaction, including a judgment debt ledger that tracks every dollar from day one to closure.

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