Judgment Debt
A debt confirmed by a court judgment, which the creditor can then enforce using formal recovery tools.
What it is
A judgment debt is a debt that a court has confirmed is owed by entering judgment in the creditor's favour. It usually includes the original amount, interest and any recoverable costs. Once judgment is entered, the debt is no longer just claimed — it is legally established.
A judgment debt can arise after a hearing or as a default judgment when the debtor does not respond to a claim.
Why it matters
A judgment debt unlocks the full range of enforcement options, from a garnishee order to seizure of goods. It can also continue to accrue interest and may affect the debtor's credit standing. In short, it turns an unpaid invoice into an enforceable obligation.
Merion pursues and enforces judgment debts for business clients across QLD, VIC, NSW and the ACT at refer a debt.
Good to know
This is general information and not legal advice. A judgment debt does not guarantee payment if the debtor has no income or assets to enforce against. Judgments can remain enforceable for a long period, often subject to renewal, and may need to be registered in another state to enforce there. Interest usually continues to run until the debt is paid.
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