Legal Definitions - judicial sale

When a court issues a monetary final judgment in a lawsuit, the winning party (judgment creditor) has the right to collect the debt owed by the losing party (judgment debtor). If the debtor fails to pay, the creditor can ask the court to enforce the judgment. The court will then issue a writ of execution, which allows a court officer (usually a sheriff) to take the debtor's money or property to pay the creditor. If there isn't enough money, the court can sell the debtor's property to pay the debt. This sale is called a judicial sale.

For example, let's say John sues Jane for $10,000 and wins. Jane doesn't pay the debt, so John asks the court to enforce the judgment. The court issues a writ of execution, and a sheriff takes Jane's car (worth $5,000) to pay John. Since there's still $5,000 left to pay, the court orders a judicial sale of Jane's house to cover the remaining debt.

The judicial sale usually takes place in the courthouse, and the court will issue an order of judicial sale that specifies the property to be sold, the notice, time and place of sale, and the terms and conditions of sale. However, the judgment debtor can still avoid the sale by paying the debt in full.

Judicial sale is usually the last resort for a judgment creditor to collect on a debt.