Judgment
A court's final decision in a civil case, establishing the legal rights and obligations of the parties — and creating an enforceable debt if money is awarded.
A judgment is the official court decision that concludes a civil lawsuit. A money judgment establishes that the defendant owes the plaintiff a specific sum — it is enforceable as a legal debt. Judgments are filed with the court clerk, creating a public record. In most states, filing a judgment in the county where the debtor owns property creates an automatic lien on that real estate.
Winning a judgment does not guarantee you will collect. Judgment enforcement requires additional steps: garnishing wages (up to 25% of disposable income in most states), levying bank accounts, placing liens on real property, or seizing and selling non-exempt personal property. Debtors may claim exemptions — homestead exemptions protect primary residence equity, and some states exempt wages or retirement accounts entirely.
Judgments in most states are valid for 10 years and can be renewed. They accrue interest at the statutory judgment rate (varies by state: typically 5–12%). If the debtor has no assets — "judgment proof" — collecting may be impossible until their financial situation changes.
Real-World Example
The contractor won a $22,000 default judgment when the homeowner didn't appear in court; the contractor then filed a wage garnishment with the homeowner's employer, receiving 25% of each paycheck until the debt was satisfied.