What is a creditor judgment and what does it mean?

A Creditor Judgment is the judgment obtained by a creditor against a debtor through which the creditor can obtain the sum due him. In a creditor judgment, the creditor has a lawsuit won in his favor He has been awarded a writ of judgment and can accomplish the judgment against non-exempt assets and property belonging to the debtor. The effect of becoming a judgment creditor is to create a certain priority right against other creditors. He gets a right to have the debt satisfied out of the debtor’s assets, subject the Statute of Limitations. In other words, a judgment creditor can enforce recovery of the debt with the assistance of the court.

 The ideal method of executing a judgment is by wage garnishment, followed by bank account levy, the seizure and liquidation of non-exempt property and liens against real property. The state exemptions allowed for personal and real property when properly used can give the defendant/debtor considerable protection against the enforcement of a creditor judgment.

State laws offer remedies to a judgment creditor in collecting the amount of the judgment. These measures bring the debtor’s property into the custody of the court in order to satisfy the debtor’s promise: they involve the seizure of property and money. The process of enforcing the judgment debt in this way is called execution. The process commences with a hearing called a supplementary proceeding. The debtor is summoned to appear before the court for a hearing to decide the nature and value of the debtor’s property. If the property is subject to execution, the court orders the debtor to surrender it.

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