Judgment Liens on Property in Pennsylvania

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

• the kinds of property subject to Pennsylvania judgment liens
• how you put judgment liens on Pennsylvania 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 Pennsylvania Judgment Liens

In Pennsylvania, you can attach judgment liens only to real estate, meaning land, buildings, and other improvements. A Pennsylvania judgment lien attaches only to real estate the judgment debtor owned when the lien arose. After-acquired property isn't automatically included (see discussion below).

No Liens on Personal Property

You can't file judgment liens on Pennsylvania personal property—cars, artwork, antiques, electronics, household furnishings, and the like. But even without judgment liens, you might be able to have the sheriff seize and sell the judgment debtor's non-exempt property.

This process is called "execution." Unless you're very familiar with the procedures in each county where the debtor has property you want to seize, don't try this on your own. The process can be mind-numbingly complex, and the details likely vary from one county to the next. It's easy to make a mistake that delays or stops the process completely.

The Pennsylvania statute of limitations to seize and sell personal property is 20 years from the date of your judgment. Miss that deadline and you're barred from collecting this way.

If you're considering this route, speak to a Pennsylvania 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.

Pennsylvania Exemptions

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

• $300 dollars worth of property, including cash, designated by the debtor
• wearing apparel
• Bibles and school books
• uniforms, tools, and equipment related to the debtor's trade or business, and
• certain retirement funds and insurance proceeds.

Note, importantly, that Pennsylvania does not have a homestead exemption. Property the judgment debtor uses as their primary residence is fair game, to the extent it's not encumbered by mortgages or other liens.

How to Attach Judgment Liens on Real Estate

Ideally, you want a judgment lien in every Pennsylvania county where the judgment debtor owns real estate. You do that by filing the proper documents with the clerk of the common pleas court in each of those counties. The documents you must file depend on the court where you got your judgment.

The three possibilities are that your judgment is from:

• the common pleas court in the same county where you want a judgment lien (Category 1)
• the common pleas court in any other county (Category 2), or
• any other court in any Pennsylvania county (Category 3).

One rule applies to Category 1, but a slightly different rule applies to Categories 2 and 3.

Category 1: Common Pleas Judgment in Same County Where You Want a Lien

Say you sued in the Allegheny County common pleas court and got a verdict in your favor. You want a judgment lien against the judgment debtor's Allegheny County home. You get that lien by having your judgment recorded in the county's judgment index.

To do that, prepare and give to the Allegheny County common pleas court clerk (sometimes called a "prothonotary"):

• a request for judgment (called a "praecipe for judgment"), and
• a notice of judgment (sometimes called a "Rule 236" notice) for each judgment debtor.

The court clerk will record your judgment and mail a copy of the notice to each judgment debtor. Once the judgment is indexed, you've got a judgment lien on the judgment debtor's Allegheny County real estate.

Each clerk's office has its own forms, local procedures, and fees. For example, you might have to provide a self-addressed, stamped envelope for each judgment debtor so the clerk can mail them the notice of judgment. Check the clerk's website or call ahead to make sure you've got everything you need.

Categories 2 and 3

Now, let's assume that your judgment is from the Philadelphia County common pleas court (Category 2), or from a small claims court or a federal court sitting in any Pennsylvania county (Category 3). You still want an Allegheny County judgment lien.

Here, the process starts by asking the clerk of the court that issued your judgment for a certified copy of your case "docket sheet"—the court clerk's record of events in your case. Note that the certified copy must include the docket entry showing the amount of your judgment. You'll need one certified copy for every county where you want a judgment lien.

Take the certified docket sheet and a notice of judgment for each judgment debtor (see above) to the common pleas court clerk in each county where you want a judgment lien. Ask that the certified docket sheet be recorded in the county judgment index. Once that's done, you've got a judgment lien in that county.

As before, check the court clerk's website or call ahead to find out about local forms and procedures.

How Long Does Your Pennsylvania Judgment Lien Last?

A Pennsylvania real estate judgment lien is good for five years from the date it's recorded in a county judgment index.

Reviving Your Judgment Lien

You're allowed to "revive"—meaning extend—a judgment lien indefinitely, but to maintain your place in the judgment lien priority line, you must do so within five years from the date the lien was recorded. If you miss that five-year deadline, your lien becomes dormant.

A dormant lien is still alive, but not forever. You can revive a dormant lien within 10 years after it goes dormant, but then you drop back to the end of the payment priority line. What happens if you don't revive a dormant lien within 10 years? It's dead, and you can't revive it anymore.

How to Revive

You revive your judgment lien by filing a request to revive, called a "praecipe to revive." You must file a request in each county where you had a judgment lien that you want to revive. Here's an example of the Bucks County revival praecipe. Your praecipe must be accompanied by a notice of revival that the clerk of the common pleas court will send to the judgment debtor.

Lien revival is also the way you capture a judgment debtor's after acquired real estate with your judgment lien. When the debtor acquires new property in a county where you already have a judgment lien, you bring that new property under your lien by reviving the old lien.

How Do You Turn a Pennsylvania Judgment Lien Into Money?

In general, there are three ways you can try to collect on a Pennsylvania 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 the judgment debtor's real estate 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

We've covered the basics, but of course, the devil's in the details. You might decide that your best option is to get help collecting your judgment. An experienced Pennsylvania 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.