Legal Definitions - judgment debtor

A judgment debtor is an individual or entity that a court has legally ordered to pay a specific sum of money to another party. This legal obligation arises from a formal court decision, known as a judgment, and remains in effect until the debt is fully paid or otherwise satisfied.

Here are a few examples to illustrate this concept:

• Scenario: After a protracted legal battle, a court rules that a construction company, "BuildFast Inc.," must pay its client, "Green Developments," $150,000 for failing to complete a project on time and to the agreed specifications.

  Explanation: In this situation, BuildFast Inc. becomes the judgment debtor because a court's judgment has legally compelled it to pay Green Developments, and that payment has not yet been made.

• Scenario: Emily sues her former roommate, David, for unpaid utility bills and damages to their shared apartment. The judge issues a ruling ordering David to pay Emily $1,200.

  Explanation: David is the judgment debtor because the court's official judgment has established his legal obligation to pay Emily, and he has not yet fulfilled that debt.

• Scenario: A small business owner, Maria, successfully sues a supplier, "PartsCo," for delivering defective components that caused significant financial losses. The court awards Maria's business $25,000 in compensation from PartsCo.

  Explanation:PartsCo is the judgment debtor because a court judgment has legally mandated that it pay Maria's business, and this financial obligation is still outstanding.