Judgment Liens on Property in New Hampshire

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

• the kinds of property subject to New Hampshire judgment liens
• how you put judgment liens on New Hampshire 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 record a certified copy of your judgment with the register of deeds for the county where the real estate is located, it becomes a lien against the judgment debtor's nonexempt real estate. Once that's done, you can look for ways to turn your judgment into cold, hard cash.

Kinds of Property Subject to New Hampshire Judgment Liens

In New Hampshire, you can attach judgment liens only to real estate. A properly recorded judgment attaches a lien to real estate the judgment debtor:

• presently owns, and
• acquires later, as long as your judgment lien is still good.

You can't put judgment liens on New Hampshire 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 New Hampshire 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 New Hampshire Judgment Liens

Like all states, New Hampshire exempts some property—both real and personal—from the reach of creditors. Exempt amounts mentioned here represent the maximum 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.

• Homestead exemption. The homestead exemption shields equity of up to $120,000 in a debtor's residence ($240,000 for married couples).
• Motor vehicle exemption. This exemption protects as much as $10,000 of equity in one automobile.
• Household goods exemption. Covered here are items such as household furniture (up to $3,500), beds and bedding, stoves, one refrigerator, utensils, one sewing machine, and provisions and fuel (up to $400).
• Retirement account exemption. New Hampshire law exempts most tax-deferred retirement accounts from attachment.
• Tools of the trade exemption. The tools of the trade exemption covers equipment, tools, and implements of the debtor's business or occupation (up to $5,000), and professional books and educational materials (up to $800).

How to Attach New Hampshire Judgment Liens

A New Hampshire judgment doesn't automatically become a lien on real estate. To attach a judgment lien, you must follow these steps.

• Get a certified copy. First, you'll need a certified copy of the judgment. You get this from the clerk of the court that entered the judgment. Check the clerk's website for information about getting certified copies of documents and online ordering. If you don't find what you need online, call the clerk's office for instructions. You need one certified copy for each county where you want to record a judgment lien.
• Prepare an affidavit. Prepare and sign an affidavit stating you've mailed a copy of the certified judgment and your affidavit to the judgment debtor at their address of record (or to their attorney, if represented), as required by law.
• Record with register of deeds. Record the certified judgment copy and the affidavit with the register of deeds for the county where the real estate is located. Check the register of deeds' website to see if you can record electronically or by mail, and to check for local recording practices.

The life of a New Hampshire judgment lien is coextensive with that of the judgment itself—meaning up to 20 years from the date judgment was entered.

How Long Does a New Hampshire Judgment Last?

A New Hampshire judgment expires 20 years from the date the judgment was entered. New Hampshire law doesn't provide any way for you to extend the life of your judgment.

Once a judgment expires, it's legally dead. You can't take any action to collect on it, or to attach new judgment liens based on it. You've lost the right to collect the money you're owed.

Getting a New Judgment

If you want to preserve the right to collect what you're due, you must file a new lawsuit—and you have to do so before your original judgment expires. A new lawsuit asks the court to award you a new judgment because the judgment debtor still hasn't paid the original judgment. If you're thinking about doing this, you should hire a New Hampshire lawyer to prepare, file, and handle the case for you.

Attach New Judgment Liens

If your lawsuit succeeds, you get a brand new judgment. But your old judgment liens don't survive. If you want liens based on the new judgment, you have to re-record them with the county register of deeds following the procedure outlined above.

How Do You Turn a New Hampshire Judgment Lien Into Money?

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