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6/25/2007 11:13:30 AM (2491 views)

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[-] Filing judgments against non-paying clients - Danielle Nelson/WI (8 replies)
6/13/2007 12:40:01 PM (3293 views)
Re: Filing judgments against non-paying clients - george Hubka/MI
6/13/2007 1:00:49 PM (4882 views)
Re: Filing judgments against non-paying clients - Kevin Ahern/CT
6/13/2007 1:44:22 PM (4848 views)

There is a difference between a judgment and a judgment lien. In order to obtain a judgment you must first file a suit and win. Subsequent to winning your judgment you have a number of remedies available...one of which is securing your judgment by filing/recording a judgment lien. The lien creates a cloud on the title to the property encumbered thereby...real estate or personal property. It also creates a credit problem for the judgment debtor in the event that he/she/it is seeking an extension of credit from a lender or finance company.

I have not done much in the Bankruptcy Court in a few years, and the law has changed twice since then, but unless the rules have changed the following applies to judgment liens. Judicial liens (judgment liens and prejudgment attachments/garnishments among them) are dischargeable as preferential transfers in a bankruptcy, but in order to be dischargeable the judicial lien must be perfected (filed/recorded) within 90 days prior to the filing of the bankruptcy. If it is not discharged within said 90 days...it becomes a permanent lien, and is assigned a priority for payment by the Court. Statutory liens such as mechanic's liens are not subject to the 90 day rule of discharge.

Generally a judgment lien is a very effective way of getting paid. Most defendants do not go bankrupt. Eventually the judgment debtor is going to want to buy a car, refi his house or seek a loan. He is not going to get it until the lien is paid and released. It may take a while...in some cases a few years...but it works.

 

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Re: Filing judgments against non-paying clients - Kevin Ahern/CT
6/13/2007 2:06:00 PM (4705 views)
Re: Filing judgments against non-paying clients - Danielle Nelson/WI
6/13/2007 5:30:50 PM (4777 views)
Re: Filing judgments against non-paying clients - Kevin Ahern/CT
6/14/2007 6:46:31 AM (4769 views)
Re: Filing judgments against non-paying clients - Kevin Ahern/CT
6/14/2007 6:57:36 AM (4856 views)
Re: Filing judgments against non-paying clients - ELENA MAUSER/DE
6/25/2007 11:21:32 AM (4653 views)
Re: Filing judgments against non-paying clients - Kevin Ahern/CT
6/25/2007 2:53:11 PM (4998 views)

[+] See Your Place From Space - David Bloys/TX (7 replies)
6/12/2007 1:31:47 PM (4366 views)


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