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What to do about this small claims judgement debt?

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abt123

Junior Member
What is the name of your state? Texas

Won judgement and put lien in 2012 for about $2200 plus interest, on another businesses real estate property. Other judgement lien holders are listed in county for that property. Now the County is after that property as well for unpaid taxes and has filed a lawsuit that is set for trial soon. We're listed as a defendant for being a lien holder. Trial is coming soon. Must we appear in court? What if we don't appear, sit by and do nothing, will we automatically be paid if there is any money left from the county debt collection action and if we're next in line of lien holders? Or must we take some sort of action to get paid?
 


Just Blue

Just Blue

Senior Member
abt123 said:
What is the name of your state? Texas

Won judgement and put lien in 2012 for about $2200 plus interest, on another businesses real estate property. Other judgement lien holders are listed in county for that property. Now the County is after that property as well for unpaid taxes and has filed a lawsuit that is set for trial soon. We're listed as a defendant for being a lien holder. Trial is coming soon. Must we appear in court? What if we don't appear, sit by and do nothing, will we automatically be paid if there is any money left from the county debt collection action and if we're next in line of lien holders? Or must we take some sort of action to get paid?
Click to expand...
It is never a good idea to ignore court proceedings when one is a defendant. Show up.
 
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abt123

Junior Member
Just Blue said:
It is never a good idea to ignore court proceedings when one is a defendant. Show up.
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Problem is we're a corporation and must be represented by attorney to show up. Costs money to do that. Also, the "Defendant" nature of it I was told is only a technicality, we're a lien holder.
 
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Edgar 1776

Guest
be careful putting liens on property for small claims judgement.
 
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Edgar 1776

Guest
I can empathize with that. However, i have seen lien holders get involved with long drawn out court cases (usually when the property has been sold to a bone fide third party, or an estate litigation issue)
As a practical matter if there is a large judgment it would be fine because ultimately your going to most likely prevail, however, for small amounts the cost and time of hiring an attorney is going to be greater that what you can get back.
 
adjusterjack

adjusterjack

Senior Member
abt123 said:
Problem is we're a corporation and must be represented by attorney to show up. Costs money to do that. Also, the "Defendant" nature of it I was told is only a technicality, we're a lien holder.
Click to expand...
It's likely that the tax lien is a priority lien along with a mortgage (if there is one). If the property gets sold at auction, there might not be enough equity to include your lien and your lien will be extinguished by the sale.
 
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abt123

Junior Member
Some people I spoke with said that it may not be necessary to do anything in this case, not even to go to trial, that the tax authority case will play out and if we're next in line of lien holders then we'll be paid the remainder. That's really what I'm trying to confirm, if we need to show up for the trial, or if we can skip being there.
 
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