A judicial sale refers to a situation when, after the monetary final judgment of a lawsuit is issued, the judgment creditor must collect the judgment debt from judgment debtor through the sale of some piece of property. After the monetary final judgment of a lawsuit is issued, the judgment creditor is entitled to collect the judgment debt. If the judgment debtor fails to pay the judgment debtor, the creditor can request the court to enforce the judgment. The court will issue a writ of execution, and a court officer, usually a sheriff in the county where the property is located, will take the judgment debtor’s money or property to pay the creditor. If there’s not enough cash, the court will sell the debtor’s property to pay the debt. This sale is called judicial sale.
The judicial sale usually takes place in the courthouse. The court will issue an order of judicial sale, specifying the piece of property of proper notice, time and place of sale, and terms and conditions of sale.
The judgment debtor can still avoid the judicial sale even if a writ of execution is issued by paying the debt in full. A judicial sale is usually the last resort of the judgment creditor to collect on a judgment.
[Last updated in June of 2023 by the Wex Definitions Team]