Judgment Liens on Property in Delaware

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 Delaware property. After a quick review of how judgment liens differ from judgments, we'll turn our attention to the specifics of Delaware law. In particular, we cover:

• the kinds of property subject to Delaware judgment liens
• how you put judgment liens on Delaware property
• how long your judgment lien lasts, 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 discuss later, when your judgment is recorded by the superior court clerk, it becomes a lien against the judgment debtor's real estate in that county. Once that's done, you can look for ways to turn your judgment into cold, hard cash.

Kinds of Property Subject to Delaware Judgment Liens

In Delaware, you can attach judgment liens only to real estate, meaning land, buildings, and other improvements. A properly recorded judgment attaches a lien to real estate the judgment debtor:

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

No Judgment Liens on Delaware Personal Property

You can't put judgment liens on Delaware 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 a Delaware 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.

How to Attach Delaware Judgment Liens

A Delaware superior court judgment automatically attaches a lien to the judgment debtor's real estate in the county where the judgment was entered. To attach a lien to real estate in a different Delaware county, follow these steps.

• Get a writ of fieri facias. Get a writ of fieri facias—legalese for an order to record your judgment—from the clerk of the superior court that issued the judgment. You'll need one writ for each county where you want a judgment lien. See if the clerk's website explains how to request a writ. If not, call the clerk's office and ask for instructions. The clerk will know what you want. You'll have to pay a small fee for each writ.
• Record in the other counties. The writ must be recorded with the superior court clerk (called a "prothonotary") in each county where you want a judgment lien. There will be a small recording fee. Once it's recorded, you've got a judgment lien against the judgment debtor's real estate in that county.

Unless it's extended as allowed by law, a Delaware judgment lien expires 10 years from the date judgment was entered. Before it expires, you can extend a judgment lien by:

• agreement with the judgment debtor, or
• filing a motion to extend with the court.

Most often, the judgment debtor won't voluntarily agree to an extension, so you'll have to file a motion asking the court to extend your lien. The judgment debtor must show the court why an extension is improper. An extended lien is effective for 10 years from the date of the court's order.

How Long Does a Delaware Judgment Last?

A Delaware judgment becomes dormant five years from the later of:

• the date it was entered, or
• the date it was last renewed.

To renew a judgment, you file a motion to refresh with the court that first issued it. The court will hold a hearing. Once the court renews your judgment, you can take steps to execute on it (collect it) for another five years.

How Do You Turn a Delaware Judgment Lien Into Money?

In general, there are three ways you can try to collect on a Delaware 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. 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 Delaware judgment lien basics, but of course, the devil's in the details. Now that you're familiar with Delaware law, you might decide that your best option is to get help collecting your judgment. An experienced Delaware 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.