Judgment Lien

AAA

DEFINITION of 'Judgment Lien'

A court ruling that gives a creditor the right to take possession of a debtor's real property if the debtor fails to fulfill his or her contractual obligations. A judgment lien may be made against an individual or business and allows the creditor to access the debtor's business, personal property and real estate, among other assets, to pay the judgment.

INVESTOPEDIA EXPLAINS 'Judgment Lien'

When a debtor does not make payment on a loan, the creditor may take legal action to receive the money to which they are entitled. Once the validity of the contract and non-payment is established, the court may order a judgment lien. The actual acquisition of real property requires additional steps.

For example, a judge may place a lien on debtor's car. This way if, the debtor doesn't pay his or her creditor within a certain time period, the car is used to pay off the remaining debt.

RELATED TERMS
  1. Ombudsman

    An official who investigates complaints (usually lodged by private ...
  2. Deficiency Judgment

    A judgment made by a court against a debtor indicating that the ...
  3. Second Lien Debt

    Debts that are subordinate to the rights of other, more senior ...
  4. Article 9

    An article under the Uniform Commercial Code (UCC) that governs ...
  5. Charging Order

    A court-authorized right granted to a judgment creditor to attach ...
  6. Collateral

    Property or other assets that a borrower offers a lender to secure ...
Related Articles
  1. Bankruptcy Protection For Your Accounts
    Retirement

    Bankruptcy Protection For Your Accounts

  2. How To Pick The Right Lawyer
    Personal Finance

    How To Pick The Right Lawyer

  3. The Benefits And Pitfalls Of Joint Tenancy
    Personal Finance

    The Benefits And Pitfalls Of Joint Tenancy

  4. Digging Out Of Personal Debt
    Credit & Loans

    Digging Out Of Personal Debt

comments powered by Disqus
Hot Definitions
  1. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  2. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  3. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  4. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  5. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
  6. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
Trading Center