A property lien may be utilized to collect a court judgment in Pennsylvania. 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 Pennsylvania?
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 affixed to real properties in Pennsylvania (i.e., a house, land, or condo).
In Pennsylvania, how can a creditor get a judgment lien?
The creditor reports the judgment with the clerk of the court of common pleas in the Pennsylvania county where the debtor owns property now or may own property in the future to attach the lien.
In Pennsylvania, how long does a judgment lien last?
In Pennsylvania, a judgment lien remains connected to the debtor’s property for five years (even if the property changes ownership).
Keep in mind that in Pennsylvania, 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 Pennsylvania bankruptcy and debt attorney to assist you in resolving any lien concerns.
Where can I get information about Pennsylvania judgment liens?
If you want to go straight to the source and seek out Pennsylvania 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 in 42 Pa. Cons. Stat. Ann. Sections 4303, 5526. (1).