New Jersey Judgment Liens
When a person fails to
pay on a debt, the business or individual seeking payment may have to resort to a lawsuit. When a judge enters an order (or “judgment”) in favor of the plaintiff/creditor, that judgment can be turned into a lien to provide a better means of collection. A judgment lien is a lien on property that results from the lawsuit judgment. Judgment liens are an effective tool for collections attorneys. This is because a lien gives a creditor a security interest in the debtor’s property.
How it Works
Once judgment has entered, a New Jersey Judgment Liens Attorney will obtain and then place the lien. It is important to properly attach the lien to the specific property to protect your claim. A mortgage holder has a lien on the property owner’s real estate until you pay the mortgage in full. Similarly, the holder of a properly attached judgment lien has a security interest in the defendant/debtor’s property.
In general, and with some exceptions, a judgment lien against real estate would be paid upon the sale or refinance of the property. However, judgment liens impair the property’s equity. Therefore, a property owner may have motivation to pay a judgment lien claim as soon as the owner is aware of the lien.
What Else it Can Do
When there is sufficient equity in real estate, a judgment lien also elevates an otherwise unsecured claim to secured status. It thus provides greater (though not complete) protection for the creditor in the event of a bankruptcy by the property owner.
Your Judgment Liens Attorney’s Role
A collection attorney can also advise as to which properties may be more quickly collected upon, such as bank accounts or other assets. In addition, he can advise whether you should turn the judgment into a:
- real estate lien,
- bank account levy, or
- garnishment of the debtor’s wages.
Seasoned collection attorneys can help assess which of these tools will be the most effective in a given case.
Contact a New Jersey Judgment Liens Attorney
Could a judgment lien help you collect on a debt? Let the experienced collection attorneys at Snellings Law LLC discuss this option with you. Call us today at 973.265.6100.