In legal terminology, a judgment creditor is a person, institution, or other entity that has received a legally binding court judgment for a monetary debt that is owed to them by another party. The court decision establishes that the debt is owed and sets out a timeline and payment schedule on which it must be repaid. When a creditor has received a judgment, their rights to the debt are secured, and they are under the protection of the court.
Judgment Creditor Rights and Responsibilities
As the judgment creditor, you have many rights. You may be able to collect from the debtor’s wages, bank accounts, or other assets. You also have a right to place a lien on the debtor’s property. You may also pursue other legal remedies. The most important right as a judgment creditor is that you have the assurance that the debtor is legally obligated to pay you what you’re owed.
As a judgment creditor, you also have certain responsibilities. You should ensure that you keep accurate records of the debt owed, the payment plan, and any money collected. You should also monitor the payments to ensure that they are made according to the court-ordered payment plan. To keep track of payments, it is best to set up a system to ensure the payments have been made.
Examples of Judgment Creditors
Common examples of judgment creditors include creditors from residential and commercial mortgages, personal loans, credit cards, car loans, and medical bills. Other cases of creditors can include those that have provided services or goods and not received payment for them. Professional services such as contractors, attorneys, and financial advisors can also be judgment creditors when a debt has not been paid.
Conclusion
Having the assurance of a legally binding court ruling affords creditors the right to pursue payment as set by the court. The obligations of a judgment creditor include keeping track of all payments, monitoring the payment plan, and safeguarding the debt owed. Many businesses rely on court decisions as a mechanism for collecting their debts, so it is important to understand the rights and obligations of both the judgment creditor and debtor.