Judgment Liens on Property in Iowa

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

• the kinds of property subject to Iowa judgment liens
• how you put judgment liens on Iowa 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 you properly record your judgment in the county judgment docket and lien index, 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 Iowa Judgment Liens

In Iowa, you can attach judgment liens only to real estate, meaning land, buildings, and other improvements.

After-Acquired Property

A properly recorded judgment attaches a lien to Iowa 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 Iowa 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 Iowa 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.

Property Exempt From Iowa Judgment Liens

Like all states, Iowa exempts some property—both real and personal—from the reach of creditors. Dollar amounts mentioned here represent the maximum value of the debtor's exempt equity in the property, which might not be the same as the property's market value.

Here are a few examples:

• a homestead, consisting of one-half acre within a city or up to 40 acres outside a city
• one motor vehicle valued at up to $7,000
• as much as $7,000 worth of household goods, furnishings, appliances, clothing, and similar property held for personal, family, or household uses
• pension and retirement accounts, and
• a maximum of $10,000 in books, equipment, inventory, and other property used by the judgment debtor in a trade, occupation or business.

How to Attach Iowa Judgment Liens

A judgment lien automatically attaches to the judgment debtor's real estate in the county where judgment was entered, when the district court clerk records it in the county judgment docket and lien index.

Follow these steps to attach a judgment lien to real estate in a different Iowa county.

• Get an attested copy. First, get an attested copy of your judgment from the clerk of the court where it was entered. Check the clerk's website to see if it explains how to get attested copies. If not, call the clerk's office for instructions. You'll need one attested copy for each county where you want to attach a judgment lien.
• File the attested copy. Next, file an attested copy of the judgment with the district court clerk in each county where you want a lien. You'll pay a small filing fee in each county. Once the attested judgment copy is filed, you've got a judgment lien against the judgment debtor's real estate in that county.

An Iowa judgment lien expires 10 years from the date judgment was entered.

What happens if your judgment lien expires before you've collected the amount you're owed? The good news is, you can get new judgment liens. The bad news is that first, you'll have to follow the steps described below to get a new judgment.

How Long Does an Iowa Judgment Last?

An Iowa judgment expires 20 years from the date it was entered. Once it expires, your judgment is legally dead. Barring extraordinary circumstances, you can't take any steps to collect it. You've lost the right to the money you were owed.

You can keep an Iowa judgment alive indefinitely by renewing it before it expires. To do that, you file a new lawsuit asking the court to enter a new judgment, based on the total amount you're still owed from the prior judgment. You'll need the court's permission if you want to file a new lawsuit sooner than nine years from the date judgment was last entered. If you decide to take this step, think about hiring an experienced Iowa collection attorney to prepare, file, and handle the lawsuit for you.

Getting a new judgment won't automatically extend or renew your judgment liens. If you want new liens—and you do if you haven't collected what you're owed—you'll have to follow the procedures described above to record your new judgment or attested judgment copies.

How Do You Turn an Iowa Judgment Lien Into Money?

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