Judgment Creditor Meaning in Legal Terms

n. the winning plaintiff in a dispute for which the court decides that the defendant owes money. A judgement creditor may use various means to recover the judgment. The judgment is valid for a certain number of years and can then be renewed by an application submitted. If the defendant debtor declares bankruptcy, the judgement creditor (the right to participate in the assets) takes precedence over general creditors who are not secured by mortgages or trust indentures and who do not have a judgment. However, if the insolvent person has no assets, it becomes an empty benefit. Tip: Contact a lawyer if you are being sued or if someone has obtained a judgment against you. You may also be able to find a compromise or settlement by negotiating with the creditor or collection agency before a court makes a judgment. There are several ways to find a lawyer for a debt collection action. A party who wins a cash prize in a dispute is called a judgement creditor until the award is paid or satisfied. The losing party who must pay the award is called the debtor of the judgment.

A judgement creditor is legally entitled to enforce the claim with the assistance of the court. A judgment is a court order, which is the decision in a legal dispute. If a judgment has been rendered against you, a debt collector has stronger tools, such as garnishment, to collect the debt. Sometimes the judgement creditor is frustrated in the enforcement of a judgement debt. Debtors may transfer assets to another owner, making collection by foreclosure more difficult. Land liens generally prevent the transfer of ownership. If a transfer of ownership has taken place, state laws generally allow the judgement creditor to sue the third party who now owns the property. Some States provide creditors with additional legal relief in cases where debtors fraudulently transfer assets to avoid judgment.

Florida`s Uniform Fraudulent Transfers Act (Fla. §§ 726 Abs. 101 ff.), for example, gives creditors more time to enforce the claim. State laws provide for an appeal for a judgement creditor to recover the amount of the judgment. These measures place the debtor`s assets in the custody of the court in order to fulfil the debtor`s obligation: they involve the seizure of property and money. The process of executing the guilt of judgment in this way is called execution. The process begins with a hearing called a supplementary procedure. The debtor is summoned to a hearing to determine the nature and value of its assets. If the property is subject to enforcement, the court orders the debtor to abandon it. A party to whom a debt is owed, who has proved the claim in legal proceedings and who has the right to collect the debt in court; the owner of an unsatisfactory court decision. Because debtors sometimes fail to deliver assets to court, other ways of repaying the debt may be necessary.

In these cases, the law refers to unsatisfied enforcement – an unenforced court order for the handing over of property. Typically, this leads the creditor to apply for a seizure order, the legal means by which assets are seized. In order to obtain a seizure order, the judgement creditor must first seize a lien on the property. Also known as a charge, a lien is a legal claim on the debtor`s assets that gives the creditor a qualified right over them. Creditors who hold liens are called secured creditors. The seizure order triggers the removal process by which a sheriff or other state officer effectively seizes the property and transfers it to the physical possession of the court. The property can then be sold to pay off the debt. A verdict is the official result of a court case. In debt collection actions, the judge can pronounce a judgment against you to the creditor or the collection agency. It is likely that you have been judged on the amount claimed in the claim if you: Another method of collection is garnishment, which targets the debtor`s salary or income. By attachment, part of the debtor`s income is regularly deducted and paid to the judicial creditor. The creditor is called debtor of attachment and the debtor debtor debtor of attachment.

The judge may also award you additional fees to cover collection costs, interest and possibly lawyer`s fees. Important: Judgments give debt collectors much more powerful tools to collect the debt from you. These tools can include wage or bank account garnishments, as well as a lien on your home. Lippman, Steven N. 1996. “Complementary and uniform duty on fraudulent transfers: dual remedies for enforcement of assets transferred from a debtor.” Florida Bar Journal 70 (January).