Judgment Creditor Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Judgment Creditor, written in plain English, along with examples of how it is used.
What is Judgment Creditor?
When a lawsuit comes to an end by the judgement in the court by the judge or jury, the party who wins the trial where money is owed to them , is said to be the judgement creditor. The loosing party are liable to pay their dues and the judgement creditors can even ask the court to attach the assets or properties of the loosing party for repayment. If the loosing party (judgement debtor) files for bankruptcy, the judgement creditors have the priority over any other creditors to get there money back.
History and Meaning of Judgment Creditor
A judgment creditor is the party who wins a lawsuit and is owed money by the losing party, known as the judgment debtor. This term has been used in the legal system for centuries to refer to the successful plaintiff in a case. Once a judgment has been made, the creditor has the legal right to collect the debt owed to them, which can include garnishing wages or seizing assets. It's important for individuals to understand the implications of being a judgment creditor or debtor, as it can greatly impact their financial standing.
Examples of Judgment Creditor
- After winning his breach of contract case, John became a judgment creditor and was able to have the court order the seizure of the defendant's property to collect his owed payment.
- Mary was a judgment creditor after her former business partner was found guilty of fraud and ordered to pay damages.
- The bank became a judgment creditor when a customer defaulted on their loan, allowing them to proceed with legal action to collect the debt owed.
Legal Terms Similar to Judgment Creditor
- Judgment debtor - the losing party in a lawsuit who owes a debt to the judgment creditor.
- Garnishment - a legal method of collecting a debt owed by taking a portion of the debtor's wages or seizing their assets.
- Bankruptcy - a legal process in which an individual or business who cannot repay their debts can receive relief from some or all of their debts.