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/Glossary/What is a Judgement Lien?

What is a Judgement Lien?

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.

  • Court Order: Confirmed through a final verdict granting the creditor attachment rights.
  • Asset Restriction: Property encumbered by this lien can’t change hands freely unless cleared.
  • Debt Enforcement: Gives the creditor leverage if voluntary repayment stalls.
  • Duration: May extend for multiple years, renewable in some jurisdictions.

Judgment liens underscore the significance of promptly resolving court-ordered debts to maintain clear, marketable titles and avoid forced settlements.

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