Judgment Liens on Property in Louisiana

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 (Louisiana calls them "judicial mortgages") on the judgment debtor's property. After a quick review of how judgment liens differ from judgments, we'll turn our attention to the specifics of Louisiana law. In particular, we cover:

• the kinds of property subject to Louisiana judgment liens
• how you put judgment liens on Louisiana 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 money 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 you take the correct steps to file your judgment, 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 Louisiana Judgment Liens

In Louisiana, you can attach judgment liens only to real estate, meaning land, buildings, and other improvements. When you properly file a Louisiana judgment (see below), your 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 Louisiana 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 Louisiana 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.

Louisiana Exemptions

Like all states, Louisiana exempts some property—both real and personal—from the reach of creditors. A few examples include:

• as a homestead exemption, up to 5 acres (within a municipality) or 200 acres (outside of a municipality) of land and improvements used as a residence and having a value of up to $35,000 (more in some cases)
• a maximum of $7,500 in one motor vehicle
• household furniture and furnishings, such as living room, bedroom, and dining room furniture, heating and cooling equipment, stoves, washers and dryers, cookware, and utensils, and
• tools, instruments, books, and one trailer used in a trade, business, or occupation.

How to Attach Judgment Liens to Real Estate

In Louisiana, a money judgment becomes a judgment lien when it's filed with the parish recorder of mortgages. Each parish clerk of the court also serves as recorder of mortgages. Simply go to the clerk of the court's office and ask them to file your judgment. Once it's filed, you've got a judgment lien in that parish. That's all there is to it.

Your judgment lien lasts for 10 years from the date of the judgment.

How Long Does Your Louisiana Judgment Last?

A Louisiana judgment is good for 10 years from the later of the date:

• it was entered, if there was no appeal
• it becomes final, if there was an appeal, or
• it was revived (see below).

Before the end of its ten-year life, you can revive a Louisiana judgment—extend it for another 10 years—by filing a motion to revive in the court where the judgment originally was entered. You must attach an affidavit saying that the judgment hasn't been satisfied.

The court will enter judgment on your motion, meaning you now have a revived judgment. You have to file it in each parish where you want a judgment lien, just as you did with the original judgment.

Note that in addition to a revived judgment, the court can award the attorney's fees and costs you paid to get it, too. There's no limit on the number of times you can have your judgment revived.

How Do You Turn a Louisiana Judgment Lien Into Money?

In general, there are three ways you can try to collect on a Louisiana 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 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 probably 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 basics, but of course, the devil's in the details. You might decide that your best option is to get help collecting your judgment. An experienced Louisiana 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.