Simple English definitions for legal terms
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A judgment lien is a type of lien that happens when someone owes money and doesn't pay it. A court can order that the person's property be used to pay the debt. This means that if the person sells their property, the money from the sale will go towards paying off the debt.
Definition: A judgment lien is a legal claim placed on a property by a court when the property owner fails to pay a debt. This lien gives the creditor the right to force the sale of the property to satisfy the debt owed.
Example: Let's say John borrowed $10,000 from Jane to start a business. John failed to repay the loan, and Jane took him to court. The court ruled in Jane's favor and ordered a judgment against John for the $10,000 he owed her. To secure the debt, the court placed a judgment lien on John's property, which means that if John sells the property, Jane will be paid the amount owed from the proceeds of the sale.
Another Example: Sarah was sued by her former landlord for unpaid rent. The court ruled in favor of the landlord and ordered a judgment against Sarah for the unpaid rent. To secure the debt, the court placed a judgment lien on Sarah's car, which means that if Sarah sells the car, the landlord will be paid the amount owed from the proceeds of the sale.
These examples illustrate how a judgment lien works. When a court orders a judgment lien, it gives the creditor the right to collect the debt owed by forcing the sale of the property. This can be a powerful tool for creditors to collect unpaid debts, but it can also be a serious consequence for property owners who fail to pay their debts.