Unpaid debts can result in a judgment, a court order that provides creditors the power to seize a debtor’s real estate or personal property if the debtor fails to meet his or her contractual commitments. Depending on the circumstances, this judgment on real estate may be placed on an individual or a business.
Basics of Judgment Liens
A creditor may sue you for the remaining sum if you owe them money and not pay it back on time. A judgment lien can be filed against you by a creditor if you are found to be in default by the court. A judgment lien is a non consensual lien since it is obtained through a court of law. This is because it has been affixed to a piece of land without the authorization or cooperation of the owner.
In most places, the party who prevailed in the lawsuit is required to record the lien with the appropriate county or state office. Creating a judgment on real estate that the debtor owns in a certain county is automatic in some jurisdictions if a court issues a judgment against a debtor in that county.
Special Considerations
There are several ways to satisfy or avoid a lien. The most obvious solution is to pay off the loan. If you settle your debt, the lien is removed. This is done by filing a release with the county or state where the lien was recorded. You can escape a nonconsensual judgment lien on a property or vehicle by filing for bankruptcy if specific conditions are met or have a company like Mayflower Judgments buy it.
