The easy definition is that a judgment is an official decision rendered by the court with regard to a civil matter. A judgment lien, sometimes referred to as an “abstract of judgment,” is an involuntary lien that is filed to give constructive notice and is to attach to the Judgment Debtor’s property and/or assets.

What is considered a Judgement on your credit report?

A judgment in your credit history means that a lender had such a difficult time recovering their money from you that they had to go to court. Judgments tell potential lenders that you can’t be trusted to pay them back. Any lender still willing to do business with you will do so knowing that you are a risky customer.

How are judgment liens different from property liens?

Creditors typically acquire property liens through your voluntary consent. On the other hand, creditors obtain judgment liens as a result of a lawsuit against you for a debt that you owe.

When does a judgment lien show up on your credit report?

Judgment liens are the most severe kind of lien and can remain listed on your credit for up to seven years. These occur when a court grants a financial interest in your assets to a creditor. Will a lien show up on a credit report?

Can a creditor put a lien on your property?

When a creditor gets a judgment against you, it does not necessarily have to result in a lien being placed on your property. Creditors can use judgments for other purposes to collect the money from you. For example, the creditor could use the judgment to garnish your wages.

How does a lien affect your credit score?

Liens come in a number of forms under three broad categories: consensual; statutory; and judgment. Consensual liens do not adversely affect your credit as long as repayment terms are satisfied. Statutory and judgment liens have a negative impact on your credit score and report, and they impact your ability to obtain financing in the future.