Judgment Collection

[ws6whiteshark]

What is the name of your state? MD

I won in court against my former tenant. The judgment was filed and the lien was recorded at circuit court. I agreed to monthly payments in the amount of $225.00 until the judgment was paid in full. However, I have not received any payments to date.

My question, since the lien is indexed under the defenant's name, when ever he goes to refi his house or tries to sell it, the title search will uncover the judgment lien and they will be required to pay it off, plus agreed interest before any real estate transaction occurs, correct? Another question, what happens when and if the defendant dies? Does the judgment lien pass on to his wife and/or children since the judgment is in the defendant's name? I thought about garnishing his wages, but 10% interest a year on the money isn't bad since the defendant has viable assets.

 

[HomeGuru]

What is the name of your state? MD

I won in court against my former tenant. The judgment was filed and the lien was recorded at circuit court. I agreed to monthly payments in the amount of $225.00 until the judgment was paid in full. However, I have not received any payments to date.

My question, since the lien is indexed under the defenant's name, when ever he goes to refi his house or tries to sell it, the title search will uncover the judgment lien and they will be required to pay it off, plus agreed interest before any real estate transaction occurs, correct? Another question, what happens when and if the defendant dies? Does the judgment lien pass on to his wife and/or children since the judgment is in the defendant's name? I thought about garnishing his wages, but 10% interest a year on the money isn't bad since the defendant has viable assets.

**A: 10% interest? You have not even got the principal.

 

[ws6whiteshark]

When the principal is paid. I could drive down to the court house and file the forms to garnish the wages... not a big deal. He's not going anywhere and I know his employer. However, I like the interest on the money.

 

[dcatz]

Another question, what happens when and if the defendant dies? Does the judgment lien pass on to his wife and/or children since the judgment is in the defendant's name?

As a general matter, the lien follows the property. However, you would be well-advised to determine how title to that property is held, that you are able to be aware of any change in how title is held – e.g. a transfer from tenants in common to joint tenancy and how your particular state treats a lien under all conditions. There is a fair body of law about lien survivorship under such circumstances, and you may not be pleased to have to add to it.

For you, your plan may be viable. As a general proposition, it is not one that judgment creditors should follow. Yours must be a small judgment to be so sure. Treating a judgment like an annuity, when there are viable means of enforcement, is a good strategy to ensure that money is taken off the table irrevocably. Aside from the vagaries of survivorship, bankruptcy, foreclosure and the existence of superior liens (e.g. tax liens) may all accomplish this.

 

[moburkes]

What is the name of your state? MD

I won in court against my former tenant. The judgment was filed and the lien was recorded at circuit court. I agreed to monthly payments in the amount of $225.00 until the judgment was paid in full. However, I have not received any payments to date.

My question, since the lien is indexed under the defenant's name, when ever he goes to refi his house or tries to sell it, the title search will uncover the judgment lien and they will be required to pay it off, plus agreed interest before any real estate transaction occurs, correct? Another question, what happens when and if the defendant dies? Does the judgment lien pass on to his wife and/or children since the judgment is in the defendant's name? I thought about garnishing his wages, but 10% interest a year on the money isn't bad since the defendant has viable assets.

No, not to his wife and children. To his estate.

I have no idea why you haven't gone the garnishment route.

 

[ws6whiteshark]

Thank you... I'll file for garnishment and get it taken care of that way. Thanks everyone.

 

[moburkes]

Thank you... I'll file for garnishment and get it taken care of that way. Thanks everyone.

Glad you understand!