When Can a Creditor File a Judgment?

Civil Judgments

Civil judgments are the awards provided to individuals who have won a case in civil court. For example, if a creditor files suit against a debtor, the case will then be heard by a judge. If the judge rules that the creditor deserves compensation, he will award the creditor a civil judgment, usually in the amount of the debt, sometimes with the inclusion of legal fees. To secure this judgment, the creditor must file suit.

A creditor may be forbidden from filing suit by the contract from which the debt stems. Technically, however, the creditor can file a suit whenever he wants. However, a contract may prevent a lawsuit from having any chance of being of successfully. For example, a contract might stipulate that a creditor may assess penalties if a debt is delinquent. Incurring these penalties would not automatically place the debtor in breach of contract, just trigger a particular clause of the contract.

Some states mandate that creditors take certain measures before filing suit in court. For example, some states require that creditors notify debtors of their obligation to pay the debt. In addition, the creditor might have to allow a certain time for a response for the debtor. If this time has elapsed and the creditor has still not been paid, he will be allowed to file suit.

In addition to having a particular period of time before which a creditor cannot sue a debtor, a creditor also must not wait too long before filing a judgment. Every state has a statute of limitations on the collection of a debt. After this statute has expired, a creditor cannot no longer attempt to collect the debt. He would therefore be barred from receiving a civil judgment against the debtor.