A property lien may be utilized to collect a court judgment in Alabama. 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 Alabama judgment liens work? Continue reading to learn the rules. (For additional information on liens on property and judgements in general,
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What types of property are susceptible to a judgment lien in Alabama?
A judgment lien in Alabama may be connected to the debtor’s real estate (a home, condo, land, or other similar kind of property interest) or to the debtor’s personal property (items like jewelry, art, antiques, and other valuables).
In Alabama, how can a creditor get a judgment lien?
The creditor files the judgment with the office of probate court in any Alabama county where the debtor owns property now or may own property in the future to attach the lien.
In Alabama, how long does a judgment lien last?
In Alabama, a judgment lien remains connected to the debtor’s property for 10 years (even if the property changes ownership).
Keep in mind that in Alabama, 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 Alabama bankruptcy and debt attorney to assist you in resolving any lien concerns.
Where can I get information on Alabama law regarding judgment liens?
If you want to go straight to the source and seek out Alabama laws on judgment liens – whether you’re a party to a judgment or merely looking for possible encumbrances on property – the applicable statute(s) may be found in Alabama Code Sections 6-9-210 to 211. For assistance in researching Alabama state legislation,
