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LSDefine
Simple English definitions for legal terms
collectability
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A quick definition of collectability:
Collectability: This means how likely it is that someone who owes money will actually pay it back. If a judge says that someone has to pay money to another person, the collectability of that money depends on whether the person who owes the money has enough money or assets to pay it back. If they don't, it may be difficult or impossible to collect the money owed.
A more thorough explanation:
Definition: Collectability refers to the ability of a person or organization to collect the amount of money owed to them by a debtor. It is the degree to which a judgment can be satisfied through collection efforts against the defendant.
Example: If a person wins a lawsuit against someone who owes them money, the collectability of the judgment depends on the financial situation of the defendant. If the defendant has a steady income and assets that can be seized, the collectability of the judgment is high. However, if the defendant is unemployed and has no assets, the collectability of the judgment is low.
Explanation: The example illustrates how the collectability of a judgment depends on the financial situation of the defendant. If the defendant has the means to pay the judgment, the collectability is high. However, if the defendant is unable to pay, the collectability is low.