MenuIn essence, money judgments are final orders entered by courts that a defendant in a lawsuit owes a certain sum to the plaintiff. They represent a particular stage of the life of a debt, and might arise from all manner of debts. Consumers are most often faced with judgments when a credit card lender or utility company successfully sues to collect an amount owed, an auto lender obtains a judgment following repossession of car worth less than the money owed, or a mortgage lender obtains a judgment following a foreclosure that fails to pay off the loan. The latter two are known as "deficiency judgments" and on the occasions that they are obtained, often surprise the debtor who thought losing their house or car was the end of that debt.
Judgments
An unpaid judgment can linger over a person for years. Bankruptcy can void and remove many ordinary judgments, particularly those to collect unsecured debts such as credit cards, medical bills and repossession deficiencies. A bankruptcy discharge can stop collection of a judgment permanently.
We discuss Judgments in more detail on the following pages:
