Collecting On A Judgment
An Overview of Creditor-Debtor Law and Judgment Enforcement Techniques
CAUTION STATE LAW VARIANCES ! ! !
Judgment enforcement law is about as non-uniform between the various states as any body of law.
Judgment Liens and Abstracts of Judgment
A lien establishes ("attaches") the creditor's judgment interest in an asset of the defendant. Once the judgment lien has attached to the debtor's asset, the creditors interest in the asset is superior to that of all third-parties who had knowledge of the lien. If the creditor's lien has been filed of public record, third-parties are deemed to have "constructive notice" of the lien.
Some number of judgments are collected by the creditor doing nothing more than obtaining a lien on some valuable piece of property of the debtor. For instance, a creditor might establish a lien on a piece of valuable real estate that the debtor owns, and the would receive up to the amount of the judgment, plus interest, when the property is eventually sold by the debtor.
An Abstract of Judgment is a form that is filed by the creditor with the county recorder's office, and which establishes a judgment lien on all the debtor's interest in real estate owned then or thereafter in that county, i.e., if the creditor has filed an Abstract of Judgment and the debtor subsequently buys or inherits a piece of real estate in that county, the Abstract of Judgment would attach to it. Since the Abstract of Judgment shows up in the title records, it means that the debtor cannot convey good title to some third-party purchaser of the real estate, and so therefore must deal with the creditor before being able to sell the property. The downside to an Abstract of Judgment is that it is only effective in the county where it is filed, so creditors will frequently file Abstracts of Judgments in the debtor's county of residence, surrounding counties, and in any other counties where the debtor might have real estate. It is also only effective as to an interest in real property.
Some states allow a lien on the debtor's personal property in the state to be created by a special filing with the Secretary of State's office. These filings create judgments liens on personal property only, and are very similar in their form and effect to a U.C.C.-1 filing. They typically do not cost much to file, but sometimes they can make a difference, particularly if two creditors are squabbling over the same asset.
C O M M O N P A G E F O O T E R
RECENT ARTICLES BY JAY ADKISSON
2017.05.16 ... No, There Is No Important Public Policy Exception To Recognizing A Sister-State Judgment
2016.8.28 … Registered Agent Sanctioned $234,983 For Helping Ex-Husband Hide Documents Abroad In Sergeeva
2016.7.24 … Sham Mortgage Loan Flops In Pivaroff
2016.7.17 … Wyly's Private Annuities Not Exempt Under Texas Exemption Law Says Bankruptcy Court
2016.6.12 … How Olins' Antique Collection Led Him To Prison For Cheating Civil Creditors
2016.4.30 … 529 Savings Accounts Not Exempt In California Under O'Brien
2016.2.28 … Repatriation Order for Offshore Assets Denied in Lewis
For Past Articles click here
OTHER INFORMATIONAL WEBSITES BY JAY ADKISSON
© 2018 by Jay D. Adkisson. All Rights Reserved. No claim to original government works. The information contained in this website is for general educational purposes only, does not constitute any legal advice or opinion, and should not be relied upon in relation to particular cases. Use this information at your own peril; it is no substitute for the legal advice or opinion of an attorney licensed to practice law in the appropriate jurisdiction. This site https://collectingonajudgment.com Contact Jay Adkisson by phone to 702-953-9617, by fax to 877-698-0678, or by e-mail to jay [at] jayad.com