There are all sorts of bad things that companies or people can do to affect your credit file, one of these is a court judgement. This is when someone has taken you to court, normally the local court for a minor claim, and have won a case against you. If they have you will have a 'court judgement' listed on your credit file which is very bad for your credit. It is unlikely mainstream lenders will lend to you if the court judgement is listed. Particularly if it is more then say $100. I have had some success with assisting clients to remove court judgement from their file so here are the steps to go through.
Step 1. You absolutely must settle the debt - this means pay it out with the plaintiff. Contact them first and suggest that you are now willing to pay out the debt, if they will co-operate and sign a notice of discontinuance. While you haven't paid them yet, is the time to negotiate on this, don't pay and then ask them to sign something to assist! They may still be steaming from the fact that they had to take you to court over it.
Step 2. Once you have agreed to pay, and the plaintiff has agreed to sign on receipt of payment, Complete one of these forms with the assistance of the local court, or a solicitor http://www.ucprforms.justice.nsw.gov.au/ Form 33 "Notice of discontinuance"
Step 3. Once paid, have the plaintiff sign, and yourself sign, and any legal representatives still working on the case sign, then go to the local court where the judgement was filed and lodge the form. Hold a copy of the form on file in case it is lost.
Step 4. Wait approximately 2 weeks for it to be processed then order a new copy of your credit file from VEDA. You can obtain it FREE by using this link
If you find the court judgement still shows you will need to check with the local court that it was processed, if it was, you will you need to check with VEDA as they may have a back log.
It's a bit of a process but once removed you are now clear to apply for credit (assuming you have no other credit marks on your file!). Good luck!