How to File a Lien on Property

Filing a lien can be frustrating, time consuming, and cost you a lot of money but it may be your only option if you have been through all other measures. The option to file a lien can become complicated and an attorney may be your best option to get the work done as quickly and as painlessly as possible but the option to file it yourself is still there.

A lien is a great way to make sure that you get the money owed to you. Many car companies put liens on vehicles so that if a vehicle is not paid then the title can not be put in the other persons name and it make it much easier to get it back so that they can try and get their monies worth by reselling the vehicle. In the same way that car companies put liens on vehicles you too can put a lien on other property.

A lien basically gives you as the creditor the ability to repossess property such as homes if the individual put this up for collateral. Collateral is what a person uses as a promise that they will make all payments in a timely fashion, if the promise is broken then the lien that was placed on the property can be moved so that you own that certain property. A lien also keeps the owner of the property from selling or giving the property away until the debt is paid. Once the debt is paid the lien can be removed and the original owner can take on full ownership of the property once again.

I once read in an article that it is best to go to civil court before placing a lien on property but this might not always be the case. Some individuals or companies choose to place a lien on the property beforehand to ensure that they are indeed paid on time. If you want to go a different route then you can simply go to civil court and get a judgment to collect unpaid debts owed to you. The judgment will usually say that the individual has so many days to respond. If the individual does not respond then it is time to take on a more serious action such as a lien.

If the debt is not paid off you can go back to civil court and allow the judge to decide on what to do to get you the debt that is owed. In most cases they will allow the individual to contact them within a certain amount of time and once they do not they hold them in contempt for non-payment by court order. The judge will then file the paper work to get a disclosure of assets. The disclosure of assets allows the judge and you to see what properties the individual owns. Once you see the disclosure of assets the judge will then determine which property or properties will have a lien put on them. Once the lien is put on the property the individual has so many more days to respond and if not then serious consequences will arise such as their property being taken away.

If an individual does not own property or if you would like your money instead of placing a lien the court may order that a certain percentage of their income be taken directly out of their check and handed over to you. For instance; in Oklahoma a loan company or creditor can take out a maximum of 25% of your income every payday to obtain the money owed to them. Once the money is paid they will stop taking the money out.

In order to file a lien you have to go to the county in which the debtor owns property. The civil court judgment will need to be registered with the land records office in that particular county. Some counties will automatically create a lien once you have registered the civil court judgment but this is not always the case.

There are many laws in different states about liens on property and some even clearly state that if an individual dies before payment has been satisfied then the property will be given according to their will.

Some creditors choose not to go this route and instead decide to take out money owed to them through garnishment of the debtors checks. Whichever way that you choose to get the money owed to you make sure that you abide by those particular laws for that county or hire an attorney who knows more about liens on property.