judgment
A court decision ordering a debtor to pay a specific amount — enables wage garnishment and bank levies.
Example
“After winning a judgment the creditor was able to garnish his wages.”
Memory Tip
JUDGMENT — the court has ruled. Now collectors have legal tools to collect.
Why It Matters
A judgment is a critical financial milestone that transforms a creditor from someone owed money into someone legally authorized to seize your assets. Understanding judgments matters because they can lead to wage garnishment, bank account freezes, and damaged credit that affects your ability to borrow money for years to come.
Common Misconception
Many people believe that ignoring a lawsuit or not showing up to court means nothing will happen, but courts issue judgments by default against defendants who do not respond. Once a judgment exists, the creditor can pursue aggressive collection actions without needing to win another case.
In Practice
If you owe a credit card company 5,000 dollars and stop paying, they might sue you in court. If you lose or do not appear, the judge issues a judgment for 5,000 dollars plus court costs. The creditor can then garnish 25 percent of your wages or freeze your bank account with 5,500 dollars in it until the debt is paid.
Etymology
From Old French 'jugement' meaning decision.
Common Misspellings
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