Properly Perfecting Judgment Liens

What are judgment liens?

When a court’s judgment establishes a legal claim on behalf of a creditor to a debtor’s property, that lien is known as a judgment lien. Critically, a court’s judgment must be final for a judgment lien to exist. By attaching a lien on a debtor’s property, a creditor has the right to take possession of the property and sell it to satisfy the debt if the debtor fails to pay. Notably, the court may place judgment liens on real property (such as land or a house) and personal property (such as a car or bank account).

Need help perfecting a judgment lien? Schedule your consultation today with a top accounts receivable and judgment collections attorney.

What legal issues typically arise related to perfecting judgment liens?

The following disputes are among the most common to judgment liens:

Statute of Limitations: The statute of limitations for filing a judgment lien on property may have expired.
Lack of proper notice: The creditor did not adequately notify the debtor of the judgment or the lien, which would invalidate the lien.
Lack of jurisdiction: The court that issued the judgment did not have jurisdiction over the debtor or the property, which would make the lien invalid.
Lack of proper documentation: The creditor improperly recorded the lien certificate and judgment, or the lien certificate and judgment did not contain the required information, making the lien invalid.
Fraud: The creditor obtained the judgment or lien by fraud, which would invalidate the lien.
Lack of priority: Other liens on the property have priority over the judgment lien, meaning that the judgment lien is not the first lien on the property.
Debtor’s claim of exemptions: The debtor may claim exemptions on the property (such as a homestead exemption), thus preventing the creditor from foreclosing on it to satisfy the debt.

Please note these are just some common disputes for perfecting a judgment lien in Florida. Every case is different and will depend on particular facts and circumstances. To see what issues and defenses may apply to your unique situation, please contact our office to set up your initial consultation.

What are relevant laws related to perfecting judgment liens in Florida?

Florida Statutes govern and clarify the requirements for recording and enforcing a judgment lien on real property. For example, section 55.10 covers judgment liens on real property, while sections 55.201-55.209 cover the perfection of judgment liens on personal property. This cross-section of statutes also establishes a central database of personal property liens with the Florida Department of Revenue.

What is required to perfect a judgment lien in Florida properly?

A judgment lien on real property under Chapter 55 requires the lienor to perform the following actions:

The plaintiff must file a certified copy of the judgment and a lien certificate in the official records of the county where the property is located within 60 days from the date of the entry of the court’s final judgment; and
The lien certificate must contain the legal description of the property, the names of the judgment debtor and creditor, and the date and amount of the judgment.

Once the plaintiff records the lien, it becomes a lien on any property that the debtor acquires in that county after the recording date. Further, the lien attaches to the debtor’s interest in the property as of the date of the lien’s creation and is valid for ten years from that date unless the lien is renewed. The judgment lien will be subject to Florida’s lien priority rules. Other liens filed earlier will have priority over the judgment lien, so creditors should file a judgment lien as soon as possible.

When a set of facts is appropriate to meet the requirements of perfecting a judgment lien, there are many paths a claimant may take. We are value-based attorneys at Jimerson Birr, which means we look at each action with our clients from the point of view of costs and benefits while reducing liability. Then, based on our client’s objectives, we chart a path forward to seek appropriate remedies, such as:

Garnishment
Foreclosure (for real property)
Levy (for personal property)
Renewal of the judgment lien (if necessary)

To see what actions may be available for your unique situation, please contact our office to set up your initial consultation.

Have more questions about a judgment lien-related situation?

Crucially, this overview of properly perfecting judgment liens does not begin to cover all the laws implicated by this issue or the factors that may compel the application of such laws. Every case is unique, and the laws can produce different outcomes depending on the individual circumstances.

Jimerson Birr attorneys guide our clients to help make informed decisions while ensuring their rights are respected and protected. Our lawyers are highly trained and experienced in the nuances of the law, so they can accurately interpret statutes and case law and holistically prepare individuals or companies for their legal endeavors. Through this intense personal investment and advocacy, our lawyers will help resolve the issue’s complicated legal problems efficiently and effectively.

Having a Jimerson Birr attorney on your side means securing a team of seasoned, multi-dimensional, cross-functional legal professionals. Whether it is a transaction, an operational issue, a regulatory challenge, or a contested legal predicament that may require court intervention, we remain a tireless advocate every step of the way. Being a value-added law firm means putting the client at the forefront of everything we do. We use our experience to help our clients navigate even the most complex problems and come out the other side triumphant.

If you want to understand your case, the merits of your claim or defense, potential monetary awards, or the amount of exposure you face, you should speak with a qualified Jimerson Birr lawyer. Our experienced team of attorneys is here to help. Call Jimerson Birr at (904) 389-0050 or use the contact form to set up a consultation.