The satisfaction of judgment is an important legal term that describes a creditor’s receipt of payment for a debt that was ordered by a court ruling. A judgment is when a court rules that one party must repay the other for a given amount, and satisfaction of judgment occurs when the debt has been fully paid by the debtor.
When this satisfaction is complete, it means that the case is resolved and the judgment is no longer in effect. The creditor is now able to receive the repayment that was ordered and will typically document that the debt has been paid for the court record.
Modern Examples of Satisfaction of Judgment
In the modern world, satisfaction of judgment is commonly used for itemized contracts such as real estate, construction projects, and debt collections. Some of the most common uses of it are:
- Property owners who must fulfill the obligations of a contract can do so when the agreed-upon repayment is satisfied.
- When a debtor owes another party, the court can order judgment for the creditor to receive the debt repayment.
- In the event of debt collections, creditors can use the satisfaction of judgment to receive the total sum.
Conclusion
Satisfaction of judgment is an important legal term that provides a way to ensure debt repayment for creditors. When all of a court judgment’s obligations have been fulfilled, it is considered satisfied, and the creditor will receive the total amount that was initially ordered.