Judgment Liens on Property in Mississippi

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

• the kinds of property subject to Mississippi judgment liens
• how you put judgment liens on Mississippi 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'll see below, when the circuit court clerk records your judgment (or an abstract of your judgment) in the county judgment roll, it becomes a lien against the judgment debtor's nonexempt property in that county. Then you can look for ways to turn your judgment into cold, hard cash.

Kinds of Property Subject to Mississippi Judgment Liens

In Mississippi, you can attach judgment liens to:

• real estate, such as land, buildings, and other improvements, and
• personal property, like cars, artwork, antiques, electronics, and household furnishings.

A properly recorded judgment or judgment abstract attaches a lien to the judgment debtor's nonexempt real estate and tangible personal property—both presently owned and later acquired—in that county. We discuss the processes for attaching judgment liens below.

Property Exempt From Mississippi Judgment Liens

Like all states, Mississippi exempts some property—both real and personal—from the reach of creditors. Exempt 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 up to 160 acres of land and buildings used as a residence and valued at up to $75,000, or a manufactured home, mobile home, or trailer used as a residence and worth up to $30,000
• up to $5,000 each of federal, state, and earned income tax refunds
• tangible personal property with an aggregate value of up to $10,000, consisting of items like household goods, clothes, autos, cash, and prescribed health aids
• pension or retirement plans, health savings accounts, and individual retirement accounts, and
• for persons aged 70 or older, a "wild card" exemption consisting of any property, real or personal, having an aggregate value of up to $50,000.

How to Attach Mississippi Judgment Liens

The processes for attaching judgment liens to real estate or tangible personal property are the same. A lien attaches automatically in the county where judgment was entered, but more work is required to attach judgment liens in other counties.

Judgment Lien in County Where Judgment Entered

A Mississippi circuit court judgment automatically becomes a judgment lien on the debtor's nonexempt property in the county where judgment was entered when the court clerk records the judgment on the county judgment roll. The lien is effective from the date judgment was entered.

Judgments of federal courts in Mississippi, the Mississippi Supreme Court, or Mississippi chancery or justice courts become a judgment lien when:

• a judgment abstract (summary) is filed with the circuit court clerk for the county, and
• the clerk records the abstract on the county judgment roll.

Judgment Lien in Different County

To get a judgment lien on nonexempt property in a different county, file a certified copy of the judgment abstract with the circuit court clerk's office there. The lien is effective when the clerk records the abstract on the county judgment roll.

Getting a Judgment Abstract

You can get copies (certified or uncertified) of a judgment abstract from the clerk of the court where the judgment was entered. You'll need an original copy for each county where you want a judgment lien. You want a lien in each county where the judgment debtor owns, or might in the future own, real estate.

When Does a Mississippi Judgment Lien Expire?

In Mississippi, a judgment lien expires seven 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 must renew your judgment. Check with the clerk's office to find out about the procedure to extend your lien.

How Long Does a Mississippi Judgment Last?

A Mississippi judgment expires seven years from the later of:

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

Once it expires, a judgment is legally dead. Barring extraordinary circumstances, you're not allowed to collect on it. You've lost the right to the money you're due.

You can renew a judgment, but you must act before the seven-year term expires.

Renewing a Mississippi Judgment

Before your judgment expires, you can renew it by filing, with the clerk of the court that entered it, a notice of renewal. When you file the notice, you (or your attorney) must include an affidavit that states the judgment debtor's name and last known address, as well as your address. You should mail the judgment debtor a notice that you've filed the notice of renewal, and file proof of mailing with the court clerk.

A notice of renewal is effective on the date you file it. Your renewed judgment lasts for seven years. You're allowed to renew a judgment indefinitely, as long as you do so before each seven-year term expires.

How Do You Turn a Mississippi Judgment Lien Into Money?

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