Judgment

What is a Judgment?

A Judgment is a formal decree issued by a court that establishes the legal obligation of one party to pay a specific sum of money to another party. This decree is often the result of a lawsuit where the court has determined that one individual or entity is responsible for settling a debt or claim made by another. Judgments entitle creditors to use various legal means to collect the debt, including but not limited to garnishing wages, seizing bank accounts, or placing liens on properties.

Examples of Judgment

1. Unpaid Rent Judgment:
   • Abel leased an apartment but failed to pay rent for several months. The landlord took the matter to court and obtained a judgment against Abel, requiring him to pay the owed rent plus any legal costs.
2. Credit Card Debt Judgment:
   • Lisa had significant unpaid credit card debt. After attempts to collect the debt failed, the credit card company filed a lawsuit and obtained a judgment from the court, ordering Lisa to pay the balance, including interest and legal fees.
3. Contractual Dispute Judgment:
   • A construction company sued a client for non-payment of services rendered under a contract. The court ruled in favor of the construction company, awarding them a judgment for the cost of services, late fees, and court expenses.

Frequently Asked Questions (FAQs)

What happens if I don’t pay a court-ordered judgment?

If you fail to pay a court-ordered judgment, the creditor may take additional steps to collect the debt, such as wage garnishment, seizing bank accounts, or placing liens on your property.

Can a judgment be appealed?

Yes, a judgment can usually be appealed within a specific time frame. The appeals process involves requesting a higher court to review the lower court’s decision.

How long does a judgment remain enforceable?

The duration a judgment remains enforceable depends on jurisdictional laws. In many cases, a judgment is enforceable for 10 years and can often be renewed.

Can a judgment affect my credit score?

Yes, a court judgment can significantly impact your credit score and remain on your credit record for several years, making it difficult to obtain credit in the future.

How is a judgment different from a lien?

A judgment is a court decree determining the amount of debt owed, while a lien is a legal claim on a debtor’s property to satisfy the debt. A judgment can lead to a lien if the creditor files it with the proper authorities.

Related Terms

• Lien: A legal right or interest that a lender has in the debtor’s property, granted until the debt obligation is satisfied.
• Wage Garnishment: A legal procedure where a portion of a debtor’s wages is withheld by their employer for debt repayment.
• Debtor: An individual or entity that owes money to another party.
• Creditor: An individual or company to whom money is owed.
• Foreclosure: The legal process by which a lender takes control of a property due to the owner’s failure to pay the mortgage.
• Default Judgment: A binding judgment entered in favor of one party based on the failure to act by the other party, typically due to non-appearance in court.

Online Resources

• Investopedia - Judgment
• Nolo - Court Judgment Basics
• Legal Zoom - Understanding Court Judgments

References

1. “Law of Debtors and Creditors: Text, Cases, and Problems” by Elizabeth Warren and Jay Lawrence Westbrook.
2. “Credit Repair Kit for Dummies” by Steve Bucci.
3. “Litigating in Small Claims Court: How to Win Your Case” by Judge Philip Straniere.
4. Cohen, M. L. (2017). “Judgment Collection in Utah.” [PDF]. Retrieved from Utah Bar.

Suggested Books for Further Study

• “The Complete Guide to Real Estate Finance for Investment Properties” by Steve Berges.
• “Real Estate Law” by Marianne M. Jennings.
• “The Real Estate Investor’s Guide to Legal Entities” by Mark Warda.
• “Fundamentals of Real Estate Property” by Stuart L. Landaw and Cris K. Oxtoby.
• “Debt Management and Collection” by Arthur Melzer.

Real Estate Basics: Judgment Fundamentals Quiz