Judgment Liens on Property in New Jersey

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

• the kinds of property subject to New Jersey judgment liens
• how you put judgment liens on New Jersey 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 judgment is properly recorded, 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 New Jersey Judgment Liens

In New Jersey, you can attach judgment liens only to real estate, meaning land, buildings, and other improvements. When your judgment is recorded as required by 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 New Jersey 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 Jersey 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.

New Jersey Property Exemptions

Unlike most states, New Jersey law doesn't offer much in the way of property exemptions from judgment liens. A judgment debtor can protect household goods and furniture with an aggregate value of up to $1,000. Some debtors can shield public pensions or retirement funds.

The New Jersey legislature has considered—but hasn't agreed on—a state homestead exemption that would exempt from collection some equity in a primary residence.

Check with a New Jersey collections lawyer for up-to-date information about exemptions.

How to Attach Judgment Liens to Real Estate

When your judgment is from the New Jersey Superior Court Law Division, Civil Part, send a signed copy of the judgment, along with the $35 filing fee, to the Clerk of the Superior Court in Trenton. If you want a copy returned to you, send a copy along with a self-addressed, stamped envelope. The clerk will "docket" (record) the signed judgment, mark your copy as docketed, and return it to you.

If your judgment is from the New Jersey Superior Court Law Division, Special Civil Part, start by asking for a "Statement for Docketing" from the Office of the Special Civil Part for the county where your judgment was entered. Once you have the statement, send it—together with the $35 filing fee—to the Clerk of the Superior Court in Trenton for docketing. Include a return copy with a self-addressed, stamped envelope if you want a copy for your records.

Once that's done, you have a judgment lien on all the judgment debtor's New Jersey real estate. You can contact the clerk's office for more information.

How Long Does a New Jersey Judgment Last?

New Jersey judgments are good for 20 years from the date of entry. 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.

Reviving a New Jersey Judgment

You can keep your judgment alive by reviving it before it runs out. File a motion to revive judgment in the same court and case where your judgment was entered, asking the court to revive it for another 20-year period. You'll have to serve the judgment debtor with a copy of the motion.

To get the judgment revived, you must prove to the court:

• it's still outstanding
• the amount that remains unpaid, and
• there's no other court proceeding (like a bankruptcy) that prevents enforcement.

Extending Your Judgment Lien

Reviving a judgment doesn't automatically extend your judgment lien. If you still want a lien—and you do, if you haven't collected what you're owed—you must re-record it. The process for re-recording a lien is much the same as the process for getting a lien in the first place, except that you send a certified copy of the order reviving your judgment (plus the $35 filing fee) to the Clerk of the Superior Court in Trenton.

Once your revived judgment is docketed, you again have a judgment lien against the debtor's New Jersey real estate.

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

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