A deficiency judgment is one for the amount of a debt in excess of the value of any collateral.

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A deficiency judgment is a court order for the debtor to pay the remaining balance of a debt that was not fully satisfied by the collateral pledged as security for the loan. The creditor can obtain a deficiency judgment when the sale of the collateral does not generate enough money to pay off the outstanding debt.

A Deficiency Judgment Is One for the Amount of a Debt