Judgment

Full Definition

A judgment is the formal, written final decision of a court that resolves a lawsuit. In a security deposit case, if the court finds for the tenant, it issues a money judgment specifying the dollar amount the landlord owes. A judgment is not automatic payment -- it is a legal right to collect that amount, which must then be enforced. If the landlord pays voluntarily, the matter is resolved. If not, the judgment becomes the foundation for collection actions such as wage garnishment, bank account levies, or property liens. Judgments in most states are valid for 10 years and can typically be renewed for another 10. Interest accrues on unpaid judgments at a statutory rate (often 8% to 12% annually). A judgment also appears on the judgment debtor's (landlord's) credit report, which may create additional motivation to pay. To 'satisfy' a judgment means it has been paid in full and the creditor (tenant) files a satisfaction of judgment with the court.