Legal Definition Judgment Debt

n. the winning plaintiff in a dispute for which the court decides that the defendant owes money. A judgement creditor may use various means to recover the judgment. The judgment is valid for a certain number of years and can then be renewed by an application submitted. If the defendant debtor declares bankruptcy, the judgement creditor (the right to participate in the assets) takes precedence over general creditors who are not secured by mortgages or trust indentures and who do not have a judgment. However, if the insolvent person has no assets, it becomes an empty benefit. While a judgment should not be ignored, there are ways to protect certain assets from collection. Most state laws offer exceptions that protect certain types of property, such as a primary residence or vehicle, as long as the value of that property is below a certain limit. In addition, certain types of personal property may be protected under Chapter 7 of bankruptcy, allowing debtors to discharge their obligations without relinquishing their real property.

A verdict is the official result of a court case. In debt collection actions, the judge can pronounce a judgment against you to the creditor or the collection agency. It is likely that you have been judged on the amount claimed in the claim if you: Different states have different procedures for debt collection judgment. See this California Class Procedure document and this New York Class Proceedings website. For example, if a borrower does not repay a loan or credit card debt, the lender or creditor can obtain a judgment to force the borrower to pay. As another example, a landlord who evicted a tenant for non-payment of rent could sue to collect the unpaid rent, and if the landlord wins the case, it would result in a judgment against the tenant. Tip: Contact a lawyer if you are being sued or if someone has obtained a judgment against you. You may also be able to find a compromise or settlement by negotiating with the creditor or collection agency before a court makes a judgment. There are several ways to find a lawyer for a debt collection action. In the United States, the courts distinguish between two types of lawsuits: civil and criminal. Civil actions are disputes between two persons or entities. For example, a customer can seek civil judgment against a company for breach of contract, or two neighbors can seek redress in a property dispute.

This type of judgment usually results in financial compensation for the injured party, but may also result in additional fines or penalties. A judgment is a court order, which is the decision in a legal dispute. If a judgment has been rendered against you, a debt collector has stronger tools, such as garnishment, to collect the debt. For the winner of a lawsuit, a court decision is only the first step to getting the money owed to him. In fact, collecting money from the debtor can be a long, tedious and not always fruitful process. However, judgments are legally enforceable. If the debtor does not pay the judgment voluntarily, the creditor may take steps such as writing a cheque from the debtor, seizing bank accounts, seizing a lien on the debtor`s property, or appointing a collection agent. “Debtor”. Merriam-Webster.com Legal Dictionary, Merriam-Webster, www.merriam-webster.com/legal/judgment%20debtor. Retrieved 10 October 2022. Summary judgment is a judgment rendered by a court or judge without a full trial.

Any party to a dispute may seek summary judgment, provided that there is no disagreement on the merits of the case. This allows both parties to avoid the costs of a full procedure. However, if a party requests summary judgment, the judge will always examine the facts in the light most favourable to the opponent. For this reason, most parties to a lawsuit avoid summary judgment unless they believe the law is firmly on their side. Most of the time, a verdict will be for a sum of money, as money is the most appropriate form of compensation for damages. A judgment, paid or unpaid, remains on the debtor`s credit report for seven years, but will have a worse impact on their credit rating if they are not paid. If a person against whom a pecuniary judgment has been rendered, he has a judicial debt. This party will be a debtor. The party to whom the debtor owes money is the judgement creditor. The judgement creditor has the right to recover the judicial debt. If the debtor does not pay the debt, the judgement creditor may enforce the judgment. When obtaining a judgment, creditors may seek to seize any property that is not exempt under state law.

These can be real estate, vehicles, bank accounts, securities, salaries, or even future claims on real estate. However, state laws often allow you to hold certain assets up to a certain amount, and debtors may be able to protect the assets if their loss would cause them undue hardship.