Hi there,
I heard this story from an old friend of mine. He had a cousin who wished to purchase a luxury car. So, his cousin used a high-interest vehicle loan to finance the purchase because he lacked the necessary funds. He did, however, repeatedly miss EMI payments because of the financial crisis. Also, the bank couldn’t recover the remainder of the debts even after confiscating and reselling his car; hence resorting to filing a lawsuit against his cousin to recover what remains. And the court said that if indeed the bank won the lawsuit with the court passing a judgement lien on his cousin’s property shares, the bank could hold additional assets, which included all his bank accounts, also the accounts where he was a co-signer. That is when I came to know what is judgement lien.
Save yourself from landing up with a lien by taking proper legal solutions for financial crises from the legal experts of NoBroker.What is judgement lien real estate?
A court order enables the creditor to take custody of or use the debtor's property if the debtor breaks contractual obligations. It is approved, enabling the creditor in recouping his losses. In this case, the creditor is known as the judgement creditor, and the debtor is known as the judgement debtor. Non-consensual liens are those that are affixed on property without the owner's (the debtor's) permission.
Do liens and judgements expire?
Unless it is discharged, the lien often lasts for 20 years. Additionally, if additional time is needed to extend the lien, the creditors must appeal to the court.
Types of Property a Judgement Lien Can Attach To
- Judgement liens on real estate:
Your ownership of real estate in the area where the creditor documents the lien or where the court declares the judgement is affected by a judgement lien. A creditor won't prosecute this option unless you have a sizable amount of equity because selling property can be pricey. Only the cash remaining after payment of mortgages (and any earlier-in-time debts) and sales expenses will be given to the creditor.
- Judgement liens on personal property.
A judgement lien frequently extends to your personal possessions. Although most private possessions can be exempted from a judgement lien or isn't valuable enough to warrant the costs of getting it, judgement liens on private possessions are typically ineffectual. It's also quite simple to sell personal property to a third party that is unaware of the lien because many property ownership liens aren't registered .
- Judgement liens on vehicles.
A judgement creditor can also file a judgement with your state motor vehicles department to get a judgement lien on any car, truck, motorcycle, or other motor vehicle you own.
I hope you now fairly understand what is judgement lien.
Read More: What is Lien in Real Estate? What is Lien Amount?
What is Judgement Lien?
Ishita Khanna
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2022-06-27T10:53:11+00:00 2022-06-27T10:53:12+00:00Comment
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