A judgment lien is a legal attachment that is automatically created when a court grants a creditor the right to collect on a debt. This is done when someone fails to meet their contractual obligations with a debtor. A judgment creditor can attach a lien to real or personal property owned by the debtor, both in the present and any acquisitions in the future. The lien is created automatically, without the consent or agreement of the debtor.

Once the court judgment is made and the lien is attached to the debtor’s property, the lien must be filed with a county or state office and recorded officially in public records. In some cases, this must be done before the lien can take effect. In some cases, judgment liens can usually remain in place until the debt is fully paid, although certain states have statutory expiration periods.

Being subject to a judgment lien is a substantial burden on the debtor. As it stays in place until the debt is satisfied or it expires, the debtor is unable to access their property or borrow money from any creditors who have filed the lien in the public record. This can cause great financial hardship for the debtor, beyond the issue of the debt itself.

In most cases, there are steps the debtor can take to contest the lien. For example, there may be errors on the filed documents or the debt may be disputed in some way. If successful, the court may lift the lien and the debter can become asset-bearing. They can then be eligible for credit, distributed assets and claim lost equity.

In summary, a judgment lien is an attachment created by a court judgment when a debtor fails to meet their contractual obligations. These liens can be attached to real and/or personal property and restrict the debtor from accessing property and taking out loans until the debt is paid. If, upon examination, the debtor contests the lien, the court can remove it and the debtor can become asset-bearing.