What Happens When a Judgment Is Entered Against You?
In Alabama, if a judgment is entered against you, the creditor who got the judgment can do several things as far as trying to collect on the judgment. The creditor can garnish wages and bank accounts; it can force the Sherriff to seize your home, real estate and personal property. It can also place a judgment lien on your home (also referred to as a judicial lien), and real estate through the Probate office. These judgment liens grow at a rate of twelve percent or more per year and can encumber your home and real estate for up to a ten year period. The judgment lien can also be renewed for another ten years at the end of the first ten year period. As a result, this could prohibit a refinance or sale of the real property unless the judgment lien plus interest is paid in full.
If you are sued in the state of Alabama, it is very important to fight any lawsuit at the beginning and to do whatever you can to prevent a judgment from being entered in the first place.
How Filing for Bankruptcy Can Avoid a Lien
A bankruptcy filing can avoid a judgment lien/judicial lien on your real estate to the extent it impairs your allowed bankruptcy exemptions. As a result, it is of critical importance that you research at the local Probate office in the county in which you live and in which you have any real estate to see if any judgment lien has been recorded against you. If so, please make sure to get a copy of that to your bankruptcy attorney prior to filing your bankruptcy case. We cannot overstate the importance of doing so in order to make sure that you get a true fresh start if you choose to file for bankruptcy relief. All of our attorneys are well educated in this area and we stand ready to help you. Please feel free to contact the office nearest to you for a free confidential consultation visit with one of our licensed attorneys.