Judgment Liens and Writs of Execution: The Practical Differences

Judgment liens and writs of execution are tools judgment creditors can utilize to enforce a money judgment. Both tools are aimed at personal property owned by the debtor. But beyond that, they have very little in common. Their primary goals, how they are executed, and other factors differ considerably.

Before discussing them in detail, it is important to note that civil courts do not enforce money judgments. They do not assist in routine collection efforts. Collection is the responsibility of the judgment creditor and its representatives. Under most state laws, judgment creditors are afforded legal tools to help them collect. Judgment liens and writs of execution are two such tools.

A Basic Definition of Both

Utah collection agency Judgment Collectors describes the judgment lien as a legal claim attached to a debtor’s personal property. The claim establishes a judgment creditor’s financial interest in that property. Furthermore, the property acts as security for payment. Attached property is usually real estate. But it can be any kind of property allowed by state law.

In some states, property liens are automatic following a civil judgment. In other states, they are not. Judgment creditors need to file liens through the county clerk, court clerk, or some other public office.

Where judgment liens do not require any direct court intervention, writs of execution do. A writ of execution is a court order directing local law enforcement to seize named property. The seized property is sold or otherwise applied towards satisfying the judgment.

5 Practical Differences

Based solely on the definitions, it is already clear that judgment liens and writs of execution are drastically different. Now let’s look at them from a practical standpoint. There are five key differences that can have a significant impact on how a judgment creditor proceeds with collection:

1. Primary Function

The primary function of a judgment lien is to encumber a property. In other words, a lien ties up both the property and its equity until the judgment has been paid. Meanwhile, the primary function of a writ of execution is to seize and sell targeted property.

2. Implementation Process

Judgment liens are implemented by creating a public record. In states where liens are automatic, they are created at the very moment the judgment is entered into the public record. Where they are not automatic, judgment liens are implemented by filing the appropriate paperwork with the designated public office.

Writs of execution are implemented by court order. A writ is served to the judgment debtor prior to his property being seized.

3. Net Effect

The net effect of a judgment lien is complicating the sale or refinancing of the attached property. The property becomes security for the debt. On the other hand, the net effect of a writ of execution is the loss of the property.

4. Scope

In terms of scope, a judgment lien tends to cover all the debtor’s interests in property within the recording system, like a county for example. A writ of execution tends to apply only to real property named in the writ. So a writ of execution is quite narrow while the judgment lien can be broader.

5. Duration

Judgment liens have a longer duration because they remain in force until the property is either transferred or the debt is paid. Writs of execution are served and executed very quickly. The entire process, including seizure and sale, is usually concluded within 30-60 days.

In practice, judgment liens are about positioning and leverage. They quietly encumber property for as long as it takes to secure payment. A writ of execution is about immediate payment. And now you know.