Judgment Liens on Property in Arkansas

You went to court and got a judgment that says you're entitled to money from the party you sued, now called a "judgment debtor." What comes next? How can you—the judgment creditor—collect the money you're due? That's the focus of this article.

One way to collect is by putting judgment liens on the judgment debtor's Arkansas property. After a quick review of how judgment liens differ from judgments, we'll turn our attention to the specifics of Arkansas law. In particular, we cover:

• the kinds of property subject to Arkansas judgment liens
• how you put judgment liens on Arkansas property
• how long your judgment lien lasts and how you can extend it, and
• the ways you can turn your judgment lien into money.

If you want some background information, here's more about how court judgments are collected.

What's the Difference Between a Judgment and a Judgment Lien?

A judgment is a court order that says a judgment creditor is legally entitled to a sum of money from a judgment debtor. But a judgment, standing alone, isn't self-enforcing. That is, you can't take a judgment to your county sheriff's office and demand that the judgment debtor's real estate be sold to pay you.

If you want to seize and sell the judgment debtor's property, you first have to attach your judgment to specific items of property. That's what a judgment lien does. As we'll see below, once your judgment is properly filed with the circuit court clerk, it becomes a lien against the judgment debtor's property. At that point, you can look for ways to turn your judgment into cold, hard cash.

Kinds of Property Subject to Arkansas Judgment Liens

In Arkansas, you can attach judgment liens only to real estate, meaning land, buildings, and other improvements. When the judgment is filed with the circuit court clerk (see below), a lien attaches to real estate the judgment debtor:

• presently owns, and
• acquires later, as long as your judgment lien is still good.

No Liens on Personal Property

You can't put judgment liens on Arkansas personal property—cars, artwork, antiques, electronics, household furnishings, and the like. But that doesn't mean a judgment debtor always gets to keep their autos, boats, and other big ticket items. Even without judgment liens, there's a way to have the sheriff seize personal property.

If you're considering this step, speak to an Arkansas collection lawyer first. They can tell you whether it's worth your time and expense to go after the judgment debtor's personal property—and there's a good chance it won't be. If it's likely to be worthwhile, they'll guide you through the process.

Arkansas Exemptions

Like all states, Arkansas exempts some property—both real and personal—from the reach of creditors. Here are a few examples:

• a homestead, consisting of a minimum of 80 acres (if outside a city, town, or village) or one-quarter acre (if within a city, town, or village)
• tax exempt pension or retirement plans and individual retirement accounts, and
• wedding rings.

How to Attach Judgment Liens to Real Estate

As a general rule, an Arkansas circuit or district court judgment, and a judgment of a federal district or bankruptcy court sitting in Arkansas, becomes a judgment lien on the debtor's real estate in the county where the judgment was entered when the judgment is filed with, and indexed by, the circuit court clerk.

But there's an important qualifier to that general rule. If the clerk of the court that entered the judgment doesn't have a permanent office in the county, then a judgment lien doesn't attach until a certified copy of the judgment is filed with the circuit court clerk.

To get a judgment lien on the debtor's real estate in a county other than where the judgment was entered, you simply file a certified copy of the judgment with the circuit clerk in that county. You'll want to do this for each county where the judgment debtor owns real estate.

Getting a Certified Copy of Your Judgment

You get a certified copy of your judgment from the clerk of the court where the judgment was entered.

Start with the court clerk's website. Some have instructions for requesting certified copies. If you don't find what you're after there, call the clerk's office, tell them what you need, and ask about the process. Chances are you'll have to pick up your copies in person or have them mailed to you.

You need an original certified copy for each county where you want a judgment lien.

When Does an Arkansas Judgment Lien Expire?

In Arkansas, a judgment lien expires ten years from the date the judgment was entered. What happens if you haven't collected your judgment before your lien expires? The short answer is: You'll need to extend your lien, as described in the next section.

How Long Does an Arkansas Judgment Last?

In Arkansas, a judgment is enforceable for 10 years from the date it was entered. But that's not the end of the story. If the judgment debtor makes a payment on the debt, the 10-year clock resets on the date of the payment. In addition, you can extend the life of your judgment by:

• making efforts to collect it, and
• reviving it before it runs out.

Efforts to Collect

There are different ways to collect your judgment. For example, you might ask the clerk of the court to issue a writ of execution. This writ is an order to the county sheriff, directing them to "levy" (seize) the judgment debtor's property. Once the sheriff has seized it, the property (unless it's exempt) can be sold at auction, and the proceeds distributed to creditors.

Collection efforts reset the judgment clock, giving your judgment another 10 years of life. There's no limit on the number of times you can do this, meaning you can keep your judgment alive indefinitely.

Reviving an Arkansas Judgment

You're allowed to revive an Arkansas judgment, but you must act before the judgment lien expires.

To do that, you file (in the court where your judgment was originally entered) a request, asking the court to order the judgment debtor to appear in court and explain why the judgment shouldn't be revived. You'll have to serve the request on the judgment debtor, just as you would serve a lawsuit.

If the judgment debtor doesn't appear as ordered, the court will revive your judgment and the judgment lien for another 10 years. But if the judgment debtor does appear, the court must hold a hearing to decide whether the judgment should be revived. In that case, you'll want to be represented by counsel.

Start this process early enough so you have time to complete it (and extend all of your judgment liens) before your liens expire. A local attorney can provide specifics but at a minimum, plan on it taking at least six months.

Revive Your Judgment Liens

Reviving your judgment doesn't automatically revive judgment liens in any county other than the one where your judgment was entered and revived. If you still want liens in those other counties—and you do, if you haven't collected what you're owed—you'll have to revive the judgment liens.

Before your judgment expires, you must file in the real estate records of each county a written notice that includes:

• the names of all judgment debtors and judgment creditors
• the court name and case number
• the county where you filed your request to revive the judgment
• the date of your request, and
• a statement that you intend to maintain your judgment lien against all the judgment debtor's property in the county.

Don't take chances that you won't get your liens revived in time. Hire an Arkansas collection lawyer to make sure it gets done correctly.

How Do You Turn an Arkansas Judgment Lien Into Money?

In general, there are three ways you can try to collect on an Arkansas judgment lien:

• negotiate a settlement
• wait for the judgment debtor to sell or refinance the property, and
• execute on your lien.

Negotiate a Settlement

If you want payment sooner rather than later, this is likely your best choice. No, you won't get all the money you're entitled to, but that's the nature of a settlement. You'll collect faster—and more inexpensively—than via the other two options.

Wait for the Judgment Debtor to Sell or Refinance

Most often, a buyer or lender will insist on clear title, free of all judgment liens. So, to sell or refinance, the judgment debtor will have to approach you to make a deal. Only now, you've got more negotiating leverage. As long as you're willing to sit tight and wait, this too is a low-cost, low-stress way to collect.

Execute on Your Lien

Executing on your lien means having the sheriff sell the judgment debtor's property at auction. This might seem like a tempting option. But before you head down this path, check with a local attorney to find out about the legwork and costs involved. In addition, see who's ahead of you in payment priority, or you might discover—too late—that the sale proceeds aren't enough to pay you in full (or at all).

Lastly, be aware that this step might be just the push the judgment debtor needs to declare bankruptcy. Should that happen, you're likely to be standing in a long, very unhappy line of creditors with little chance of getting paid.

Next Steps

We've covered the judgment lien basics, but of course, the devil's in the details. Now that you're familiar with Arkansas law, you might decide that your best option is to get help collecting your judgment. An experienced Arkansas creditor's rights or collection attorney can answer your questions and help you chart a collection path that gives you the best chance to maximize your recovery.