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What is the difference between a lien and a Judgement?

What is the difference between a lien and a Judgement?

The easy definition is that a judgment is an official decision rendered by the court with regard to a civil matter. A judgment lien, sometimes referred to as an “abstract of judgment,” is an involuntary lien that is filed to give constructive notice and is to attach to the Judgment Debtor’s property and/or assets.

How does a money judgment work?

A creditor gets a judgment when it wins a lawsuit against you. Once the creditor has a judgment against you for a specific amount, that creditor can use methods to collect the money that are unavailable without a judgment.

How do you take legal action if someone owes you money?

Yes, you can sue someone who owes you money. When someone keeps “forgetting” to pay you or flat out refuses to pay up, the situation can quickly become frustrating. You can take the issue to a small claims court and pursue legal action if it meets the minimum and maximum money thresholds.

What happens when you have a money judgment against you?

When a creditor sues you and wins, the court issues a money judgment against you. Once the creditor has a money judgment, it can use various methods to collect on that judgment. It can garnish your wages, place a levy on your bank account, or place a lien against any real estate that you own.

Can you enforce a judgement if you owe someone money?

You cannot enforce a judgement if you’re told that the person who owes you money has got a ‘Breathing Space’ and is temporarily protected from their creditors. Find out about your responsibilities and what you need to tell the court during a ‘Breathing Space’. You can ask the court to send bailiffs to collect the money.

How to collect on a judgment against a corporation?

You can collect on your judgment against a Corporation by yourself! Most people are unaware because they get bombarded with debt collectors and collection agencies that offer to do the collection for a large portion of the judgment amount.

Do you have to pay a court fee to enforce a judgment?

Enforce a judgment. You can ask the court to collect payment from the person or business who owes you money (the ‘debtor’) if they do not pay you after receiving the court order. You must pay a court fee when you ask the court to collect the payment.

What to do if business owes you money?

If the money is owed by a business, you can ask for an officer from the company to attend court and give details of its accounts. You can then decide if you want the court to take further action to collect your payment.