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What is a Judgement lien?


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We were being sued by Capital One for $600. The day we went to court we made an agreement with the attorney, before we saw the judge, to pay $50 per month. We specifically asked if this agreement would eliminate the possibility of liens or wage executions. The answer was "yes". We just recieved a letter stating that there is now a judgement lien against our property.Can they do this?

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Question, what can collectors realistically do once they obtain a judgment lien on a property? Have you ever heard of anyone being forced into foreclosure or seizure with another lienholder on record such as a mortgage company, the result of a revolving credit debt? It seems that if there is equity sufficient to pay off an unsecured credit card debt a property could be at risk of Sheriff action. Supposedly people rarely lose homes in this instance but get wages garnished and bank accounts levied. Bankruptcy of course is a death knell to judgments and liens if a debtor choses to go that route and I've never heard of a civil judgment or lein surviving an honest bankruptcy declaration. It seems many collectors will pursue people until they file only to lose out on eventually collecting anything. Comments please!

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It is still a powerful creditors' tool for any number of reasons. For example, if the property is sold, the judgment creditor is in a priority position and will get paid if there is sufficient equity in the property. If the owner wants to refinance, the judgment creditor can either force a payoff or frustrate the refi.

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