What happens when a debt judgment expires?

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August 31, 2026 / 10:29 AM EDT / CBS News

Household debt is a major financial burden for borrowers in today's economic climate. Case in point? The total household debt balance nationwide reached $18.8 trillion in the second quarter of this year, with credit card balances climbing by $21 billion during that time. But today's borrowing isn't the only debt that's weighing on borrowers. For those who fell behind on debt years ago and were ultimately sued by a creditor or debt collector, an unpaid judgment often remains a financial concern long after the original debt first became delinquent.

That's because if a borrower was sued over a debt and lost, either by default or otherwise, the court judgment can remain enforceable for years, which in many cases is long enough for a borrower's financial circumstances to change considerably. Someone who was sued over an unpaid balance years ago could now be earning more, holding different assets, or simply be in a much better position financially yet still have the old judgment hanging over them. And, as that judgment gets…

Original source: https://www.cbsnews.com/moneywatch/