What is a Money Judgment? A Comprehensive Legal Overview

Definition & meaning

A money judgment is a legal order issued by a court that requires one party, known as the judgment debtor, to pay a specified amount of money to another party, referred to as the judgment creditor. This order is typically the result of a civil lawsuit where the creditor has proven that they suffered damages or losses that warrant compensation. The judgment outlines the exact amount awarded and may also include interest and costs associated with the legal proceedings.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A landlord wins a lawsuit against a tenant for unpaid rent. The court issues a money judgment requiring the tenant to pay the landlord $3,000.

Example 2: A business sues a supplier for breach of contract, and the court awards the business $10,000 in damages due to lost profits. (hypothetical example)

State-by-state differences

State Key Differences
California Defines money judgment under specific statutes; allows for certain exemptions.
New York Has different procedures for enforcement and collection of money judgments.
Texas May include additional interest rates and collection methods.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Difference
Judgment A formal decision made by a court. A money judgment is a specific type of judgment that involves a monetary award.
Liability Legal responsibility for one's actions or debts. Liability may lead to a money judgment but is not limited to monetary awards.

What to do if this term applies to you

If you are involved in a situation where a money judgment is relevant, consider the following steps:

  • Gather all necessary documentation related to the case, including contracts and evidence of damages.
  • Consult a legal professional for tailored advice, especially if the situation is complex.
  • Explore US Legal Forms for templates that can help you prepare the required legal documents.

Quick facts

Attribute Details
Typical Fees Varies by state and case complexity.
Jurisdiction State courts primarily handle money judgments.
Possible Penalties Failure to comply with a money judgment may result in wage garnishment or asset seizure.

Key takeaways

FAQs

If you fail to pay a money judgment, the creditor may take legal action to collect the debt, which can include garnishing wages or seizing assets.