A judgment lien is a court ruling that gives a creditor the right to take possession of a debtor’s real or personal property if the debtor fails to fulfill his or her contractual obligations.

Where is a judgment lien effective?

A judgment lien affects real estate you own in the county where the creditor records the lien, or where the court enters the judgment. Selling real estate can be an expensive process, and a creditor won’t pursue this avenue unless you have significant equity in the property.

Can a judgment lien be placed on your property?

This is known as a judgment lien. The creditor can use a judgment lien on your property to ensure they receive the money they won in a suit against you. After a creditor wins a lawsuit against a debtor, the court can grant it a certificate of judgment that can be given to a land records office in the county where the property is located.

What makes a judgment lien a nonconsensual judgement?

A judgment lien is a court ruling that gives a creditor the right to take possession of a debtor’s property if the debtor fails to fulfill his or her contractual obligations. Judgment liens are nonconsensual because they are attached to property without the owner’s consent or agreement.

Can a creditor put a lien on your property without notice?

There are two types of liens: Involuntary liens can happen without notice depending on the situation. Most commonly, a creditor will place a lien against your property after it sues you and wins the case. This is known as a judgment lien.

What happens when you pay off a lien on a property?

If you pay off the underlying debt, the creditor will agree to release the lien. The creditor then files this release with the same authority with which it recorded the original lien. Once the creditor releases the lien, you may sell, trade, or otherwise transfer the property as you please.