Judgment Liens on Property in Oklahoma

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

• the kinds of property subject to Oklahoma judgment liens
• how you put judgment liens on Oklahoma 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 file a statement of judgment, your judgment 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 Oklahoma Judgment Liens

In Oklahoma, you can attach judgment liens only to real estate, meaning land, buildings, and other improvements. When you properly file a statement of judgment (see below), your 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 Oklahoma 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 an Oklahoma 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.

Oklahoma Property Exemptions

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

• a home (including a manufactured home) used as a principal residence
• wearing apparel worth up to $4,000
• all household and kitchen furniture
• books, tools, and equipment used in a trade or profession, valued at up to $10,000
• one motor vehicle worth as much as $7,500, and
• alimony, separate maintenance, and child support payments.

How to Attach Judgment Liens to Real Estate

Attaching a judgment lien to Oklahoma real estate is simple. File a Statement of Judgment (AOC Form 27a) with the county clerk and pay a nominal filing fee. Your signature must be notarized, so be sure to sign it in front of a notary.

Once the county clerk accepts your filing, a judgment lien attaches to the judgment debtor's real estate in that county. You should file an original statement in each county where the judgment debtor owns, or might in the future own, real estate.

The same process applies when your judgment is from the Oklahoma small claims court, except that the court clerk, if asked, will prepare the Statement of Judgment.

How Long Does an Oklahoma Judgment Last?

An Oklahoma judgment expires 5 years from the date of entry unless you take steps to collect on it or renew it. 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.

Renewing an Oklahoma Judgment

Renewing an Oklahoma judgment is easy, but you must act before the judgment expires. Simply file—in the case where your judgment was originally entered—a Notice of Renewal of Judgment (AOC Form 59). A timely renewed judgment is good for another five years. You're allowed to renew a judgment as many times as you like, but you must renew before each five-year term runs out.

Extending Your Judgment Liens

Renewing a judgment doesn't automatically extend your judgment liens. If you still want those liens—and you do, if you haven't collected what you're owed—you must extend them. The process for extending a lien is similar to the process for getting a lien in the first place.

Get certified copies of the Notice of Renewal of Judgment from the clerk of the court, one for each county where you want to extend a lien. Before your judgment expires, file a certified copy of the notice with the county clerk in each county. Once you do that, you've extended your judgment lien.

How Do You Turn an Oklahoma Judgment Lien Into Money?

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