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A judicial lien is created when a court grants a creditor an interest in the debtor's property, after a court judgment. Judgment liens can arise in a wide variety of circumstances ? basically, any incident that can land you in court can end up generating a judgment lien.
?Lien Avoidance?, or ?Avoiding a Lien? is essentially wiping away that interest that a creditor has in your property, removing their right to repossess it, or otherwise ?take it back?.
Judgment creditors usually record this kind of lien on property with title papers, such as a car or a business's assets. If, for example, you tried to sell your car, the lien would appear, and you'd have to pay off the judgment creditor before selling.
Here's another example. A judge may place a lien on a debtor's car for nonpayment of a car loan. In this scenario, if the debtor does not pay the creditor within a certain time period, the car would be used to pay off the remaining debt. If there's a balance left over, the debtor is on the hook for that.
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. When we're talking about a judgment, it's up to the winning party to enforce or collect upon the judgment.
A security interest or legal right acquired in one's property by a creditor. A lien generally stays in effect until the underlying obligation to the creditor is satisfied. If the underlying obligation is not satisfied, the creditor may be able to take possession of the property involved.