A property lien may be utilized to collect a court judgment in Arkansas. 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.
So, how do Arkansas judgment liens work? Continue reading to learn the rules. (For further context on liens on property and judgements in general,
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What types of property are susceptible to a judgment lien in Arkansas?
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.
Only real estate in Arkansas may have a judgment lien attached to it (such as a house, condo, or land).
In Arkansas, how can a creditor get a judgment lien?
A judgment lien is usually formed automatically in the Arkansas county where the judgment is entered; otherwise, the creditor must register the judgment with the clerk of the circuit court in the Arkansas county where the debtor’s property is situated.
In Arkansas, how long does a judgment lien last?
In Arkansas, a judgment lien remains connected to the debtor’s property for 10 years (even if the property changes ownership).
Keep in mind that in Arkansas, 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 things get problematic, you should consult with an Arkansas bankruptcy and debt attorney to assist you sort out any lien concerns.
Where can I get information about Arkansas judgment liens?
If you want to go straight to the source and seek into Arkansas laws on judgment liens – maybe you’re a party to a judgment or merely looking for possible encumbrances on property – the applicable statute(s) can be found at Ark. Code Ann. § 16-65-117. For assistance in researching Arkansas state legislation,