Judgment Liens on Property in Maryland

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

• the kinds of property subject to Maryland judgment liens
• how you put judgment liens on Maryland 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 a Maryland judgment is properly recorded and indexed, 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 Maryland Judgment Liens

In Maryland, you can attach judgment liens only to real estate, meaning land, buildings, and other improvements. When a judgment is recorded and indexed as required by Maryland law (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 Maryland 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 Maryland 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.

Maryland Property Exemptions

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

Here are a few examples:

• clothing, books, instruments, tools, and similar property valued at up to $5,000 and necessary for the judgment debtor's trade or profession
• a "wild card" exemption, consisting of cash and personal property selected by the judgment debtor, with an aggregate value of up to $6,000
• child support and a portion of alimony payments, and
• household goods and furnishings, clothing, appliances, books, and similar items held for personal, family, or household purposes, with an aggregate value of up to $1,000.

How to Attach Judgment Liens to Real Estate

The procedure for attaching a judgment lien to real estate depends on two factors:

• whether the judgment was entered in the circuit court or district court, and
• the county where you want to attach a lien.

Circuit Court Judgment

A circuit court judgment attaches a lien to the judgment debtor's property in the county where the judgment was entered as soon as the circuit court clerk records and indexes the judgment in the county judgment record.

If you want a circuit court judgment entered in one county to attach a judgment lien in a different county, there's a bit more work involved. Ask the clerk of the circuit court that entered the judgment to certify it and send it to the clerk of the circuit court for the county where you want a judgment lien. Once the clerk in that county records and indexes the certified judgment copy, you have a judgment lien against the debtor's real estate there.

District Court Judgment

Special rules apply to judgments and judgment liens in Baltimore City. A judgment entered by the Baltimore City District Court attaches a judgment lien to real estate located there when the judgment is recorded and indexed by the clerk of the court. The lien is effective from the date judgment was entered. A judgment from a district court outside of Baltimore City attaches a judgment lien that's effective when the judgment is recorded in Baltimore City.

The process is a bit more involved for judgments and judgment liens entered by district courts outside of Baltimore City. In a nutshell, the district court clerk's office must send a certified notice of lien to the circuit court for the county where you want to attach a lien. Here's how it works.

Send a "Request to File Notice of Lien" (Form DC-CV-035) to the clerk of the district court. If you want a lien to attach in the county where your district court judgment was entered, simply ask the clerk to send a certified notice of lien to the circuit court clerk in that county. Your judgment lien attaches when the circuit court clerk records and indexes the notice of lien.

If you want a judgment lien to attach in a different county, ask the district court clerk to:

• send a certified copy of the notice of lien to the circuit court clerk in that county, and
• send a certified copy of your judgment to the district court clerk in that county.

You've got a judgment lien when the circuit court clerk records and indexes the certified notice of lien.

When Does a Maryland Judgment Lien Expire?

A Maryland judgment lien expires when the judgment upon which it is based expires. As discussed below, you can renew a judgment and then attach renewed judgment liens.

How Long Does a Maryland Judgment Last?

A Maryland judgment expires 12 years from the later of the:

• date of entry, or
• date the judgment was last renewed.

Once your judgment expires, it's legally dead. Barring exceptional circumstances, you can't take any steps to enforce it—meaning you've lost the right to collect the money you're due.

You can keep your judgment alive by renewing it before it runs out.

Renewing a Maryland Judgment

You're allowed to renew a Maryland judgment, but you must act before the judgment expires. Renewing is easy. Simply file (in the court where your judgment was originally entered) a notice of renewal. The clerk of the court will renew the judgment for another 12-year term.

There's no limit on the number of times you can renew a judgment.

Renewing Your Judgment Liens

Renewing your judgment doesn't automatically renew your judgment liens. If you still want those liens—and you do, if you haven't collected what you're owed—you must renew the judgment liens.

For circuit court judgments, the process for renewing a lien is much the same as the process for getting a lien in the first place. Get certified copies of the renewed judgment from the clerk of the court, one for each county where you want to renew your lien. Send a certified copy to the circuit court clerk in each county. Once the clerk records the renewed judgment, you've renewed your judgment lien.

If your judgment was in the district court, you can ask the clerk to send the notice of renewal (see above) to each circuit court clerk where a notice of lien was recorded. The circuit court clerk will record the notice of renewal, and you've got a renewed judgment lien.

How Do You Turn a Maryland Judgment Lien Into Money?

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