In a civil court case, after a judge or jury hands down a verdict -- or after a court-approved settlement -- a judgment is entered by the court. As part of a typical judgment, the court orders the payment of money from one person to another. But the person who owes the money (the debtor) doesn't always pay up. A judgment lien is one way to ensure that the person who won the judgment (the creditor) gets what he or she is owed. A judgment lien gives the creditor the right to be paid a certain amount of money from proceeds from the sale of the debtor's property.
So how do judgment liens work in New Hampshire? Read on to understand the rules. (For more background information on liens on property and judgments in general, check out Nolo's articles Collect Your Court Judgment with a Real Estate Lien and Can You Collect Your Judgment?)
What kind of property is subject to a judgment lien under New Hampshire law?
In every state, a judgment lien can be attached to the debtor's real estate -- meaning a house, condo, land, or similar kind of property interest. And some states also allow judgment liens on the debtor's personal property -- things like jewelry, art, antiques, and other valuables.
In New Hampshire, a judgment lien can be attached to either real estate or personal property.
How does a creditor go about getting a judgment lien in New Hampshire?
The creditor may attach the debtor's property during the lawsuit. For personal property, the creditor files the order of attachment with the New Hampshire Secretary of State. For real estate, the creditor files the order of attachment with the Register of Deeds in any New Hampshire county where the debtor has property now or may have property in the future.
How long does a judgment lien last in New Hampshire?
A judgment lien in New Hampshire will remain attached to the debtor's property (even if the property changes hands) for six years (whether the lien is attached to the debtor's real estate or personal property).
Keep in mind: In New Hampshire, a creditor's ability to collect under a judgment lien will be affected by a number of factors -- including a fixed amount of value that won't be touchable if the property is the debtor's primary residence (called a homestead exemption), other liens that may be in place, and any foreclosure or bankruptcy proceedings. If things get complicated, you may want to talk with an experienced New Hampshire bankruptcy and debt attorney to help you sort out any lien issues.
Where can I look up New Hampshire law on judgment liens?
If you want to go right to the source and look up New Hampshire laws on judgment liens -- maybe you're a party to a judgment, or you're just researching potential encumbrances on property -- the relevant statute(s) can be found at N.H. Rev. Stat. Ann. Sections 511:1, 511-A:5, 511:55:00. For tips on looking up New Hampshire state laws, check out Nolo's Laws and Legal Research section.