- posted: Jul. 25, 2024
When a creditor wins a civil lawsuit, obtaining a judgment is just the beginning. The real challenge often lies in collecting the judgment. Florida’s lien law can be a powerful tool for doing so.
A judgment lien allows a creditor to claim against a debtor’s non-exempt real estate and personal property within the state. The process begins by filing a judgment lien certificate with the Florida Department of State. This action must be taken within five years of the judgment date to maintain the lien's validity. The lien will then attach to any real property the debtor owns in the county where the lien is recorded. It is important to note that a lien on real property must be recorded in each county where the debtor owns property to be effective.
Once the lien is in place, it serves as a public record, alerting potential buyers or financiers of the creditor's interest. This can make it difficult for the debtor to sell or refinance the property without first satisfying the judgment. In Florida, a judgment lien on personal property is valid for five years and can be extended by filing a new certificate within the 90-day period before the original lien expires. This extension ensures that the lien remains in effect, preserving the creditor's ability to collect.
Judgment liens in Florida are not limited to real estate; they can also attach to the debtor’s personal property, such as vehicles, boats and other valuable assets. This broad scope makes liens a versatile tool for recovering debts. However, there are limitations. For instance, Florida law exempts certain types of property from judgment liens, including homestead property, which is protected under the Florida Constitution. Therefore, creditors must be aware of these exemptions when pursuing a lien.
The process of enforcing a judgment lien may involve additional steps, such as conducting a debtor's examination to uncover hidden assets or seeking a writ of execution to seize non-exempt property. Additionally, creditors may consider garnishing wages or bank accounts as supplementary methods to recover the judgment amount. These strategies highlight the importance of understanding the full range of options available under Florida law.
Creditors unfamiliar with the intricacies of Florida’s lien laws should seek professional legal assistance. An experienced commercial litigation attorney can navigate the legal requirements, ensure proper filing, and maximize the chances of successful collection.
Clay Parker, Esq. is an Orlando business attorney experienced in using the Florida lien law to enforce judgment creditors’ rights. Call us at [ln::phone] or contact us online to learn more about your options.
