Definition
A judgment creditor is a person or entity who has won a monetary judgment against a debtor in a court of law. This court decree entitles the creditor to employ various legal mechanisms to collect the outstanding debt from the judgment debtor—that is, the person who has been ordered to pay the sum.
Examples
- Liens: If Jane wins a court judgment against John for $10,000 and John refuses to pay, Jane, as the judgment creditor, can file a lien against John’s property.
- Garnishment: ABC Corporation is awarded a judgment against an ex-employee for fraudulent activities. As a judgment creditor, ABC Corporation can garnish the ex-employee’s wages.
- Asset Seizure: A business wins a court case against a supplier and becomes a judgment creditor. The business can potentially seize the supplier’s assets to fulfill the judgment amount.
Frequently Asked Questions (FAQs)
Q1: How can a judgment creditor enforce a court judgment?
A1: A judgment creditor can enforce a judgment through various means such as wage garnishment, bank account garnishment, liens on real property, and seizing personal assets.
Q2: What is the difference between a judgment creditor and a creditor?
A2: A judgment creditor has a court-issued judgment enforcing the debt, whereas a regular creditor simply has a contractual right to payment but no enforceable court decree supporting their claim.
Q3: Can a judgment creditor charge interest on the debt owed?
A3: Yes, often courts allow the judgment creditor to collect interest on the outstanding judgment amount until it is fully paid.
Q4: Is there a time limit for a judgment creditor to collect a debt?
A4: Yes, there is typically a statute of limitations that varies by jurisdiction, determining how long a judgment creditor can enforce the debt. This can often be renewed before the expiration date.
Q5: What steps must be taken before a judgment creditor can seize a debtor’s property?
A5: Usually, the creditor must obtain a writ of execution from the court and then arrange for a sheriff or other appropriate authority to seize the debtor’s property.
Related Terms
Judgment Debtor
Definition: The person or entity that a court has ordered to pay a judgment to the judgment creditor.
Lien
Definition: A legal claim against a debtor’s property as a security for a debt, which can be enforced by the judgment creditor.
Garnishment
Definition: A legal procedure through which a portion of a debtor’s wages or bank account is withheld by an employer or bank for direct payment to the judgment creditor.
Online Resources
- Nolo.com: Offers comprehensive articles and legal documents for judgment creditors.
- LegalZoom.com: Provides professional services for enforcing judgments.
- FindLaw: Features in-depth legal information on debt collection and creditor’s rights.
References
- Nolo. “Judgment Creditor.” Nolo, www.nolo.com.
- FindLaw. “Debt Collection Basics.” FindLaw, Thomson Reuters.
- Legal Information Institute. “Judgment Creditor Definition.” Cornell Law School, www.law.cornell.edu.
Suggested Books for Further Studies
- “Debt Collection and Judgment Enforcement: The Comprehensive Guide” by Aaron Larson
- “The Complete Guide to Credit & Collection Law” by Arthur Winston and Nicole F. Misuk
- “Enforcing Judgments and Collecting Debts in New York” by Timothy Polk
