A judgment is a formal court decision, often involving money, issued after a legal dispute. In finance, a judgment usually requires a person to repay a debt or damages to another party. For example, if someone fails to pay a loan, the lender might sue, and the court could issue a judgment demanding repayment. Judgments can affect credit scores and may lead to wage garnishment or liens on property if the debt isn’t paid, making it essential to address financial obligations to avoid legal action.