A property lien may be utilized to collect a court judgment in Maryland. This is how it works.
In a civil court matter, a judgment is issued by the court after a judge or jury renders a verdict – or after a court-approved settlement. A typical judgment includes an order for money to be paid from one person to another. However, the individual who owes the money (the debtor) does not always pay it back. A judgment lien is one method of ensuring that the person who obtained the judgment (the creditor) receives what is due to him or her. A judgment lien grants the creditor the right to receive a set amount of money from the profits of the debtor’s property sale.
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What types of property are susceptible to a judgment lien in Maryland?
A judgment lien may be connected to the debtor’s real estate in every state, which includes a home, condo, land, or other kind of property interest. In addition, certain jurisdictions permit judgment liens on the debtor’s personal property, including as jewelry, art, antiques, and other valuables.
A judgment lien may only be connected to real estate in Maryland, not to personal property.
In Maryland, how can a creditor get a judgment lien?
Any real estate held by the debtor and situated in the Maryland county where the judgment was recorded immediately becomes subject to a judgment lien. The creditor submits a certified copy of the judgment with the district court clerk for the county where the debtor’s property is situated.
In Maryland, how long does a judgment lien last?
In Maryland, a judgment lien remains connected to the debtor’s property for 12 years (even if the property changes ownership).
Keep in mind that in Maryland, a creditor’s ability to collect under a judgment lien is influenced by a number of factors, including a fixed amount of value that cannot be touched if the property is the debtor’s primary residence (known as a homestead exemption), other liens that may be in place, and any foreclosure or bankruptcy proceedings. If matters get problematic, you should consult with an expert Maryland bankruptcy and debt attorney to assist you in resolving any lien concerns.
Where can I get information about Maryland judgment liens?
If you want to go straight to the source and look up Maryland laws on judgment liens – perhaps you’re a party to a judgment or just looking into potential encumbrances on property – the relevant statute(s) can be found at Md. Code Ann. [Cts. & Jud. Proc.] section 11-402; Md. Ct. Rule 2-621, 2-625, 3-621, 3-622, 3-625.