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Judgment debt


As a result of proceedings taken, a court may make an order that a sum of money is to be paid by one party to another. This may arise out of an action in tort or contract or from some other matter that has been the subject of a court learing. The sum ordered to be paid is known as a judgment debt. Where such a debt is not paid after the prescribed period the creditor may apply again to the court for an alternative remedy, e.g. the compulsory seizure by bailiffs of such part of the debtor's property as will satisfy the debt.

Reference: The Penguin Business Dictionary , 3rd edt.