Can I Settle Debt Associated with a Property Lien?

Learning that a creditor or debt collector is suing you to collect the money you owe is an extremely stressful experience. Nobody wants to have to face a lawsuit from a creditor. Many Georgia residents often have misconceptions about what this type of lawsuit can involve, too, and what the consequences can be. It is important to know up front that this is a type of civil lawsuit — you are not facing a criminal case. As such, you cannot face criminal consequences if the creditor wins the lawsuit and obtains a judgment against you (and a debt collector is prohibited from even suggesting that criminal consequences could occur based on the federal Fair Debt Collection Practices Act).

What can happen after a creditor lawsuit is a judgment. If the creditor wins the civil lawsuit, they can obtain a judgment against you. With that judgment, the creditor may be able to take certain financial actions to ensure that they recoup what you owe them. Such actions can include wage garnishments, bank garnishments, and property liens. If you have already gone through such a lawsuit, can you still get out of debt — and the stressful circumstances brought on by the judgment — by settling debt associated with a property lien? In short, you may be able to settle this debt with help from a Georgia debt settlement attorney.

Understanding Judgments Liens on Property in Georgia

Before we discuss negotiating a debt settlement for a debt tied to a property lien, it is important to understand how a property lien works in Georgia after a judgment. Under Georgia law, a creditor takes you to court and wins a judgment against you if you are behind on debt you owe them. The judgment, sometimes called a money judgment, says that legally the creditor is owed a debt from you and allows the creditor to take new actions to recover that debt. After the judgment, you become a “judgment debtor” and the creditor becomes a “judgment creditor.”

One of the things a judgment creditor can do is to have a lien put on one or more of your assets. The judgment lien allows the creditor to obtain the money they are owed if you ever sell the asset, and in some cases allows the creditor to force a sale of the property. Judgment liens can be attached to real estate as well as personal property.

Even after a judgment lien is attached, you may still be able to settle the debt for less than what you owe. It will depend on the likelihood of the judgment creditor obtaining the full amount you owe, as well as other factors. If you can settle the debt, the lien can disappear.

Contact a Lilburn Debt Settlement Attorney for Assistance with Your Debt Settlement Negotiations in Georgia

Have you recently gone through a stressful lawsuit in which a creditor sued you for an unpaid debt and obtained a property lien against one of your assets? This can be an extremely difficult situation to find yourself in, and our firm knows how stressful it can be. The good news is that it is often still possible to settle debt even after a judgment, and this includes a judgment that results in a property lien. If your financial circumstances may allow you to pay a portion of the debt, an experienced Lilburn debt settlement lawyer at Konn Law Firm LLC can help you to negotiate a settlement agreement. Contact our firm today to learn more about your options and how we can assist you.

Source:

law.justia.com/codes/georgia/title-44/chapter-14/article-8/part-3/section-44-14-361-1/