How Long Does an Abstract of Judgment Place a Lien on the Debtor's Real Property?

A property lien is a court judgment entitling a creditor to a share of the profits from the sale of a debtor's attached real property. The court may grant a creditor the right to attach a variety of assets including a home, place of business or automobile. The statute of limitations for a property lien judgment varies by state and can usually be quite lengthy.

State Judgment Laws

Each state sets its own statute of limitations for creditors collecting on court judgments. Property liens usually follow this variable statute of limitations for determining how long real property remains attached for the pursuit of debts. Creditors may enforce property liens when real property is sold or liquidated by the court while these properties are under the statute of limitations. For example, the statute of limitations for a domestic judgment in California is 10 years while the same statute runs as long as 20 years in Alabama.

Renewable Court Judgments

Some states, including California and Texas, allow creditors to renew the statute of limitations on a judgment with court approval. This means creditors can double the amount of time available to collect on property liens and increase the likelihood of receiving payment for debts owed. If successful, any notations for attached properties remain on debtors' credit reports and will continue to lower credit scores and make it difficult for debtors to acquire new credit accounts or loans for new property.

Real vs. Personal Property

Real estate and personal property may have differing statutes of limitations depending on the particular laws in a county or municipality within a state. A debtor's home or place of business usually counts as real estate and an automobile or work vehicle counts as personal property. For example, according to the website for Onondada County, New York the statute of limitations for a property lien on real estate is 10 years whereas a judgment against personal property lasts 20 years. It's important to check local exceptions to larger state laws to have all pertinent information about a creditor's ability to collect on a property lien.

Property Liens in Bankruptcy

A debtor filing for Chapter 7 bankruptcy can expunge a property lien through the liquidation process. The court liquidates his real and personal property up to the exemptions he places on his property according to state bankruptcy law. Bankruptcy limits a creditor attempting to secure payment from the court on a property line by the state's homestead and personal property exemptions. This means if a debtor is able to protect the value of his home or other attached property from liquidation through state-allowed bankruptcy exemptions, the creditor cannot legally collect on the lien and the court expunges the judgment.