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A Judgement Lien arises when a court ruling awards a creditor the right to secure debt recovery against a debtor’s assets. If the losing party fails to pay damages or settle legal fines, the creditor can record a lien, potentially hindering the debtor’s ability to sell, finance, or transfer the asset without addressing the owed amount. This legal binding remains until the judgment is satisfied or otherwise resolved.
Judgment liens underscore the significance of promptly resolving court-ordered debts to maintain clear, marketable titles and avoid forced settlements.
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