In a civil court case, after a judge or jury hands down a verdict -- or after a court-approved settlement -- a judgment is entered by the court. As part of a typical judgment, the court orders the payment of money from one person to another. But the person who owes the money (the debtor) doesn't always pay up. A judgment lien is one way to ensure that the person who won the judgment (the creditor) gets what he or she is owed. A judgment lien gives the creditor the right to be paid a certain amount of money from proceeds from the sale of the debtor's property.
So how do judgment liens work in Indiana? Read on to understand the rules. (For more background information on liens on property and judgments in general, check out Nolo's articles Collect Your Court Judgment with a Real Estate Lien and Can You Collect Your Judgment?)
What kind of property is subject to a judgment lien under Indiana law?
In every state, a judgment lien can be attached to the debtor's real estate -- meaning a house, condo, land, or similar kind of property interest. And some states also allow judgment liens on the debtor's personal property -- things like jewelry, art, antiques, and other valuables.
In Indiana, a judgment lien can be attached to either real estate or personal property.
How does a creditor go about getting a judgment lien in Indiana?
A judgment lien is created automatically on the debtor's property if the property is located in the Indiana county where the judgment is handed down. For debtor property in another Indiana county, the creditor files a copy of the judgment with the circuit court clerk for that county.
How long does a judgment lien last in Indiana?
A judgment lien in Indiana will remain attached to the debtor's property (even if the property changes hands) for ten years.
Keep in mind: In Indiana, a creditor's ability to collect under a judgment lien will be affected by a number of factors -- including a fixed amount of value that won't be touchable if the property is the debtor's primary residence (called a homestead exemption), other liens that may be in place, and any foreclosure or bankruptcy proceedings. If things get complicated, you may want to talk with an experienced Indiana bankruptcy and debt attorney to help you sort out any lien issues.
Where can I look up Indiana law on judgment liens?
If you want to go right to the source and look up Indiana laws on judgment liens -- maybe you're a party to a judgment, or you're just researching potential encumbrances on property -- the relevant statute(s) can be found at Ind. Code Ann. section 34-55-9-2. For tips on looking up Indiana state laws, check out Nolo's Laws and Legal Research section.