Satisfaction of Judgment in Tasmania: How to Close the Case After Payment

Paying the Debt Doesn't Automatically Close the Case

When a judgment debtor pays the full balance — principal, costs, post-judgment interest, and enforcement fees — the court record doesn't update itself. The judgment stays on file as an open, enforceable order until the creditor formally records satisfaction.

This matters for the debtor because an unsatisfied judgment can affect their credit file and any future court proceedings. It matters for the creditor because leaving enforcement processes running after full payment exposes you to liability.

How to Record Satisfaction

Under Rule 811 of the Supreme Court Rules 2000, a memorandum of satisfaction may be entered when the registry receives a consent signed by the party entitled to the benefit of the judgment, attested and verified by the witness's affidavit.

The memorandum confirms:

• The proceeding number and court
• The judgment date and original amount
• That the debt has been paid in full (including interest and costs)
• The date of final payment

Once lodged, the registry updates the public court record to show the judgment as satisfied.

Stopping Active Enforcement

If you have a warrant to sell property or a garnishee order still running when the debtor pays in full, you must immediately notify the registry and any relevant bailiff or garnishee (employer, bank) in writing. For an active warrant, notify the bailiff to halt execution. For a garnishee order attaching earnings, serve an Order Discharging the Garnishee Order on the employer so they stop making deductions.

Continuing to enforce after full payment has been received is unlawful. If a garnishee payment comes in after the debt is already cleared, you're obligated to return the overpayment.

The Credit Reporting Effect

A default judgment often appears on commercial credit databases. Filing a satisfaction memorandum updates that notation to "Satisfied" or "Paid" — it doesn't delete the record entirely, but it signals to future lenders and business partners that the debt is resolved.

Debtors sometimes ask creditors to file a satisfaction memo promptly for exactly this reason. If you've received full payment, there's no tactical advantage in delaying — and delay can generate complaints.

When to Use a Notice of Discontinuance Instead

A notice of discontinuance (Form 36) is different from a satisfaction memo. It ends a proceeding; it does not by itself record satisfaction of an existing judgment. Satisfaction confirms that the judgment debt was paid in full as ordered.

If the debtor has paid everything owed, file for entry of satisfaction. If you've agreed to accept less than the full amount in a negotiated settlement, get advice on the consent or order needed to record the settlement and deal with the remaining balance.

The Tasmania judgment enforcement guide includes a debt balance ledger that tracks every payment, interest accrual, and enforcement fee, so you know exactly when the balance hits zero and it's time to file.

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