Judgment
Judgment is a court decision, spelled out in a court order, that adjudicates a dispute between two parties by determining the rights and obligations of each party. As another example, a landlord who evicted a tenant for not paying the rent might file a lawsuit to collect the unpaid rent, and if the landlord won the lawsuit, it would result in a judgment against the tenant. So, if the debtor does not voluntarily pay the judgment, the creditor can take steps such as conducting a debtor's examination, seizing bank accounts, putting a lien on the debtor's property, or hiring a debt collector. The resulting court judgment orders the loser of that lawsuit to pay the winner a specified sum of money. Judgment is a court decision, spelled out in a court order, that adjudicates a dispute between two parties by determining the rights and obligations of each party.
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What Is Judgment?
Judgment is a court decision, spelled out in a court order, that adjudicates a dispute between two parties by determining the rights and obligations of each party.
Understanding Judgment
Judgments are classified as:
Judgments are usually monetary, but can also be non-monetary.
Most of the time, a judgment will be for a sum of money because money is the most appropriate form of compensation for the harm. A judgment, paid or unpaid, will remain on the debtor's credit report for seven years, but it will have a worse effect on their credit score if it is unpaid.
For the winner of a lawsuit, a court judgment is only the first step in getting the money they are owed. Actually collecting the money from the debtor can be a long, arduous, and not always successful, process. However, judgments are legally enforceable. So, if the debtor does not voluntarily pay the judgment, the creditor can take steps such as conducting a debtor's examination, seizing bank accounts, putting a lien on the debtor's property, or hiring a debt collector.
For example, if a borrower does not repay a loan or a 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 not paying the rent might file a lawsuit to collect the unpaid rent, and if the landlord won the lawsuit, it would result in a judgment against the tenant.
Related terms:
Adjudication
An adjudication is a legal ruling or judgment, usually final, but can also refer to the process of settling a legal case or claim through the court system. read more
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Credit Card Debt
Credit card debt is a type of unsecured liability that is incurred through revolving credit card loans. It greatly affects your credit score. read more
Credit Score: , Factors, & Improving It
A credit score is a number between 300–850 that depicts a consumer's creditworthiness. The higher the score, the better a borrower looks to potential lenders. read more
Credit Report
A credit report is a detailed breakdown of an individual's credit history, provided by one of the three major credit bureaus. read more
Debtor
A debtor is a company or individual who owes money to a lender and is also often referred to as a borrower. Read about laws that protect debtors. read more
Eviction
Eviction is the process by which a landlord may legally remove a tenant from a rental property. read more
IOU
An IOU is a document acknowledging a debt. IOU is a phonetic version of the words "I owe you." Learn how IOUs work and when they are legal. read more
Judgment Lien
A judgment lien is a court ruling giving a creditor the right to take possession of a debtor's property if the debtor doesn't fulfill his or her obligations. read more