What is a deficiency judgment?

A deficiency judgment is a legal ruling that grants a creditor the right to collect an unpaid debt from a debtor. Specifically, a deficiency judgment is issued when the value of a debtor’s assets (such as real estate) is not enough to cover what the debtor owes, leaving a “deficiency” balance. A creditor that has secured a deficiency judgment is then usually allowed to collect the remaining debt amount from the debtor. In Hawaii, deficiency judgments are generally governed by Chapter 506 of the Hawaii Revised Statutes. In certain cases, the creditor may also be able to access additional resources like the debtor’s wages and bank accounts. Ultimately, a deficiency judgment is a legal remedy for creditors to recoup the remaining balance of an unpaid debt.

Related FAQs

What is harassment or abuse by debt collectors?
How does a creditor get a judgment?
How can creditors legally collect debt?
What is a trustee
What is a debt collector's responsibility to provide information?
What is a creditor’s bill of rights?
What is the statute of limitations on debts?
What is a secured creditor?
What is a levy on wages?
What is a discharge injunction?

What is a deficiency judgment?

Related FAQs

Related Blog Posts