A judgment debt is a type of debt that arises when an individual or business loses a civil lawsuit and is ordered by the court to pay money to another party. The losing party is said to have incurred a “judgment” against them, which means they are legally obligated to make payment according to the terms set forth by the court. If the judgment debtor fails to comply with the order, the winning party may take steps to collect the money through legal action or other methods such as garnishing wages or seizing assets.