A judgment debtor is an individual or entity that has been ordered by a court to pay a specific amount of money to another party, known as the judgment creditor. This situation arises when the debtor loses a lawsuit and fails to fulfill the payment required by the judgment. The term is commonly used in civil law contexts, particularly in cases involving unpaid debts or damages awarded by the court.
The term "judgment debtor" is primarily used in civil law. It applies to cases where a court has determined that one party owes money to another. Legal professionals often engage with this term in the following contexts:
Users can manage some aspects of these processes themselves with the right legal forms, such as those available through US Legal Forms, which are drafted by qualified attorneys.
Here are a couple of examples of abatement:
Example 1: A homeowner sues a contractor for failing to complete a renovation. The court awards the homeowner $10,000. If the contractor does not pay, they become a judgment debtor.
Example 2: A business wins a lawsuit against a supplier for breach of contract. The court orders the supplier to pay $5,000, making them a judgment debtor if they do not comply. (hypothetical example)
Examples of state differences (not exhaustive):
| State | Judgment Collection Process |
|---|---|
| California | Allows wage garnishment up to 25% of disposable income. |
| Texas | Protects certain assets from being seized, including homesteads. |
| New York | Permits garnishment of wages, but requires a court order. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Difference |
|---|---|---|
| Judgment Creditor | The party awarded money by the court. | Opposite of judgment debtor; the creditor is the one owed money. |
| Debtor | A person or entity that owes money. | Judgment debtor specifically refers to those with a court judgment against them. |
If you are identified as a judgment debtor, consider the following steps:
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If you fail to pay, the creditor may take legal actions such as garnishing your wages or seizing your assets.