Judgment Liens on Property in Wisconsin

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

• the kinds of property subject to Wisconsin judgment liens
• how you put judgment liens on Wisconsin 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 your judgment or a transcript of it is recorded in a county judgment and lien docket, it becomes a lien against the judgment debtor's real estate in that county. Once that's done, you can look for ways to turn your judgment into cold, hard cash.

Kinds of Property Subject to Wisconsin Judgment Liens

In Wisconsin, you can attach judgment liens only to real estate, meaning land, buildings, and other improvements. 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.

No Liens on Personal Property

You can't put judgment liens on Wisconsin 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 Wisconsin 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 Wisconsin Judgment Liens

Like all states, Wisconsin exempts some property—both real and personal—from the reach of creditors. Dollar amounts mentioned here represent the maximum value of the debtor's exempt equity in the property, which might not be the same as the property's market value.

Here are a few examples:

• a homestead worth up to $75,000
• motor vehicles valued at up to $4,000
• as much as $12,000 worth of household goods, furnishings, appliances, toys, animals, clothing, and similar property held for personal, family, or household purposes
• pension and retirement accounts, and
• a maximum of $15,000 in books, equipment, inventory, and farm products used by the judgment debtor in a trade or business.

How to Attach Wisconsin Judgment Liens

Once a circuit court judgment is entered into the county judgment and lien docket and the docketing fee is paid, the judgment automatically attaches a lien to the judgment debtor's real estate in the county where the judgment was entered.

Follow these steps to attach a circuit court judgment lien to real estate in a different Wisconsin county, or to attach a lien based on a judgment of a Wisconsin municipal court or a court of the United States.

• Get a certified transcript. Get a certified transcript (summary) of your judgment—one for each county where you want a judgment lien—from the clerk of the court that issued it. See if the clerk's website explains how to request a transcript. If not, call the clerk's office and ask for instructions. You'll have to pay a small fee for each transcript.
• File with the circuit court clerk. Take a certified transcript to the circuit court clerk in each county where you want to attach a judgment lien, and ask them to file it. There will be a small filing fee. Once the transcript is filed, you've got a judgment lien against the judgment debtor's real estate in that county.

As a general rule, a Wisconsin judgment lien expires 10 years from the date the judgment or a certified transcript is entered on the county judgment and lien docket. If you want to extend a judgment lien, you'll have to file a lawsuit to get a new judgment, as described below.

How Long Does a Wisconsin Judgment Last?

A Wisconsin circuit court judgment expires 20 years from the date judgment was entered. Judgments of the Wisconsin municipal court, by contrast, last for 6 years from date of entry.

If your judgment or judgment lien is about to expire, you can file a lawsuit asking the court to enter a new judgment, based on the total amount of the old judgment that's still outstanding. You'll want to have an experienced Wisconsin collection attorney prepare, file, and handle the lawsuit for you.

Before you sue, you must ask the court for "leave" (permission) to file your case, and you must show the court that there's "good cause" for the new lawsuit. Good cause can be found if your judgment or lien are about to expire, or if filing a new lawsuit is the only way you can protect your right to collect the amount you're due. In addition, you must notify the judgment debtor, in writing, of your intent to file a new case.

If your lawsuit succeeds, you'll get a new judgment for the total amount you're owed. Note, importantly, that getting a new judgment doesn't automatically extend your judgment liens. If you want liens—and you do when you haven't collect the amount you're owed—follow the procedures for attaching judgment liens described above.

How Do You Turn a Wisconsin Judgment Lien Into Money?

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