What Does Judgement Debtor Mean?

The legal field is notorious for using archaic and strange-sounding words and terminology. "Judgment debtor" sounds overly serious. In truth, it refers to a defendant who has been ordered to pay a creditor by the court but has failed to do so. The implications of being a judgment debtor can be serious; however; a creditor may be able to garnish a judgment debtor's wages to satisfy a debt.

Judgment Debtor

A person does not automatically become a judgment debtor. That title is reserved to describe a person who owes a debt to a creditor and has not paid the debt. Before a person can become a judgment debtor, the creditor must follow the applicable laws and regulations regarding debt collection and have a judge find in favor of the creditor. After being declared a judgment debtor, the creditor can take additional collection steps for recovering the debt.

Incurring Debt and Default

When a person borrows money, she becomes a "debtor." The person or entity owed the debt is the "creditor." Often, a promissory note or other written document describes the rights and obligations of the parties, including what the debtor must pay and what interest applies. If the debtor fails to repay the debt, she is in default. The creditor can then begin to make collection efforts. The efforts may involve a collection agency or the creditor simply contacting the debtor to repay the debt. If the debtor still fails to repay, a lawsuit may be required.

Debt Collection Efforts and Lawsuit

A creditor can seek the court's help in enforcing a debt by filing a debt collection lawsuit. The creditor names the debtor as the defendant, and has the burden of proving that a valid agreement existed between the debtor and creditor and that the debtor failed to repay the debt. The debtor may raise defenses. If the creditor prevails, the debtor is ordered to pay the debt back. If the debtor fails to repay the debt pursuant to the judge's order, she becomes a judgment debtor.

Further Collection Efforts

The creditor can seek further court assistance to collect from a judgment debtor. The debt has already been proven, and the creditor must allege and support that the debtor has failed to repay the debt. The court may order the judgment debtor's property and assets be garnished to satisfy the debt.