Judgment Liens on Property in North Carolina

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

• the kinds of property subject to North Carolina judgment liens
• how you put judgment liens on North Carolina 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 you take the correct steps to record your judgment, 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 North Carolina Judgment Liens

In North Carolina, you can attach judgment liens only to real estate, meaning land, buildings, and other improvements. When you properly record a North Carolina judgment lien (see below), it 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 North Carolina 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. The process begins by sending the judgment debtor a mandatory notice, giving them a chance to identify exempt property they want to protect as allowed by North Carolina law (see below). The court will confirm that they're entitled to the exemptions they claim.

Next, after identifying the judgment debtor's nonexempt property, you get a writ of execution from the clerk of the court. Deliver the writ to the sheriff, and they'll levy (seize) what property they can find. The sheriff auctions the property to pay your judgment—as long as others aren't ahead of you in the payment line.

If you're considering this, speak to a North Carolina 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.

North Carolina Exemptions

Like all states, North Carolina exempts some property—both real and personal—from the reach of creditors. A few examples include:

• up to $35,000 worth of real or personal property—$60,000 in some cases—used as a home
• a maximum of $3,500 in one motor vehicle
• as much as $5,000 worth of household goods, furnishings, clothing, books, and other items used primarily for personal, family, or household purposes, and
• up to $2,000 worth of professional books, implements, or tools of the trade.

How to Attach Judgment Liens on Real Estate

Getting a judgment lien on North Carolina real estate is simple, but the process depends on where the property is located. For real estate located in the same county where the judgment was entered, there's probably nothing you need to do. There's a bit more involved when the real estate is situated in a different county.

Property in the County Where Judgment Entered

When the court enters judgment for you, the court clerk will index and record it on the county judgment docket. Once that's done, a judgment lien automatically attaches to the judgment debtor's nonexempt real estate in the county. It also will attach to any nonexempt real estate the judgment debtor later acquires.

Property in a Different County

To get a judgment lien in a different county, go to the court clerk's office and tell them you need a certified copy of the judgment transcript. In non-legal terms, you're asking for a certified copy of the court clerk's entry of your judgment in the judgment docket. The clerk will give you a form to complete.

Fill out that form and pay a small fee. The court clerk will prepare the certified transcript and send it to the court clerk's office in the county where you want a judgment lien. That clerk will record the certified transcript in the county judgment docket, and that's it. You've got a judgment lien in that county, too.

Beware of Local Variations

Different court clerks might have their own variations on these procedures. To be on the safe side, call ahead or check online for their requirements. Better yet, get help from a local collection attorney.

How Long Does Your North Carolina Judgment Last?

A North Carolina judgment is good for 10 years from the date it's entered by the court. A judgment lien lasts from the date it's filed in a county judgment docket until the date the judgment expires.

Renewing Your Judgment

North Carolina law lets you renew your judgment for another 10-year period. Here's how it works.

Before the judgment expires, you must file a new lawsuit asking to renew your judgment. The defendant—the judgment debtor—will need to convince the court that they have a viable defense to your case. As long as you file in time and your judgment hasn't already been satisfied, that'll be tough for the judgment debtor to prove. Note that if your lawsuit succeeds, you get a new judgment—not an extension of the old judgment. We explain why that's important below.

While your new lawsuit likely will be straightforward (as lawsuits go), think about hiring an experienced local collection lawyer to handle it. This is someone who knows the law, what you need to prove, and how to head off any potential defenses. If your judgment is worth renewing, it makes sense to have qualified legal representation.

Extend Your Judgment Liens

Why is it significant that you're getting a new judgment, and not just extending the old one? Because renewing your judgment doesn't automatically extend your judgment liens. Ideally, you want to file your lawsuit in sufficient time that you can get a new judgment and record new judgment liens before the old liens expire.

In the county where you get your new judgment, a new judgment lien will automatically arise when the court clerk enters the judgment in the county judgment abstract. If you still want liens in other counties, you must follow the procedure described above to get new liens in those counties.

How Do You Turn a North Carolina Judgment Lien Into Money?

In general, there are three ways you can try to collect on a North Carolina 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 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 probably 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 property at auction. This might seem like a tempting option. But before you head down this path, check with the court clerk or the county sheriff (or 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

Want to have a look at North Carolina's judgment lien laws? You'll find them at N.C. Gen. Stat. Ch. 1, Art. 23 (2025) (captioned "Judgment").

We've covered the basics, but of course, the devil's in the details. After reviewing North Carolina's statutes, you might decide that your best option is to get help collecting your judgment. An experienced North Carolina 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.