Legal Definitions - collectability

Definition: Collectability refers to the ability of a person or organization to collect the amount of money owed to them by a debtor. It is the degree to which a judgment can be satisfied through collection efforts against the defendant.

Example: If a person wins a lawsuit against someone who owes them money, the collectability of the judgment depends on the financial situation of the defendant. If the defendant has a steady income and assets that can be seized, the collectability of the judgment is high. However, if the defendant is unemployed and has no assets, the collectability of the judgment is low.

Explanation: The example illustrates how the collectability of a judgment depends on the financial situation of the defendant. If the defendant has the means to pay the judgment, the collectability is high. However, if the defendant is unable to pay, the collectability is low.