DEFINITION OF JUDGMENT
A judgment is a court order to the loser of a lawsuit to pay the winner a specified amount of money. If someone has been injured in some way, they will seek to resolve the dispute in court and collect damages by taking legal action. Judgments are generally monetary, but can also be non-monetary. The judgment could force a contractor to finish a job, for example, rather than paying money. Most of the time, a judgment will be made on a sum of money because money is the most appropriate form of compensation for damage. 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 not paid.
BREAKDOWN OF JUDGMENT
For the winner of a lawsuit, a court judgment is only the first step in obtaining the money owed to them. In fact, collecting money from the debtor can be a long, arduous, and not always successful process. However, the judgments are legally enforceable. Thus, if the debtor does not pay the judgment voluntarily, the creditor can take measures such as examining the debtor, seizing bank accounts, putting a lien on the debtor’s property, or hiring a collection agent.
Examples of judgment situations
For example, if a borrower does not pay off a credit card loan or debt, the lender or the creditor can get a judgment to force the borrower to pay. As another example, a landlord who evicted a tenant for not paying the rent could file a lawsuit to collect the unpaid rent, and if the landlord won the lawsuit, it would result in a judgment against the tenant.