Judgment Debt Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Judgment Debt, written in plain English, along with examples of how it is used.
What is Judgment Debt?
The amount of money a party who loses in a lawsuit is obliged to pay to the party who wins is called judgement debt.
History and Meaning of Judgment Debt
Judgment debt refers to the amount of money that a court orders a losing party in a lawsuit to pay to the winning party. The losing party is considered to be in debt for the amount of the judgment until it is paid in full. This can include not only the amount of money that is owed but also any interest or fees that may accrue.
The term "judgment debt" has been used in legal settings for many years and is an important part of the legal system. It allows individuals and organizations to seek compensation in cases where they have been wronged or suffered damages. The legal process for obtaining a judgment debt involves filing a lawsuit, presenting evidence in court, and obtaining a ruling from a judge or jury.
Examples of Judgment Debt
A company sues a former employee for violating a non-compete agreement. The court finds in favor of the company and orders the employee to pay $50,000 in damages. This amount is considered a judgment debt.
A landlord takes a tenant to court over unpaid rent. The court orders the tenant to pay $5,000 in back rent and damages, which becomes a judgment debt.
In a personal injury lawsuit, a jury awards a victim $100,000 in damages. The defendant is ordered to pay this amount as a judgment debt.
Legal Terms Similar to Judgment Debt
Legal Judgment: A decision made by a court or other legal authority that resolves a dispute between parties.
Debt Collection: A process by which creditors attempt to recover debts from individuals or organizations who owe money.
Damages: A monetary award given to a plaintiff in a lawsuit to compensate for loss or injury suffered as a result of a defendant's actions.
Garnishment: A legal process by which a creditor can collect a debt by seizing a portion of a debtor's wages or assets.