A money judgment occurs when a creditor, most often a debt collection agency, files suit against you in court and you either fail to contest the lawsuit or the collector successfully proves its case to the judge.
Once the judge issues a money judgment to the plaintiff, it becomes a judgment creditor and receives additional collection rights under the law. The judgment also appears on your credit report.
How a Money Judgment Affects Your Credit Score
A civil judgment, such as that levied in a debt collection case, is entered into the county public record within a week. After this time, the judgment creditor may pick up its certified copy of the ruling and use that document to enforce more aggressive debt recovery methods.
