Saturday, January 2, 2010

Can a Creditor File a Lien & Garnish at the Same Time?

When a person is sued in civil court for a debt and then found liable for the debt's payment, he must abide by the payment instructions provided by the judge. If he fails to pay the money to the plaintiff by the date the judge orders, then the debtor may face more aggressive action. This can include liens and garnishments which can occur simultaneously, in some cases.

Civil Judgments

    A creditor cannot file a lien or a garnishment order against a defendant for a debt without first having the debt recognized by a court. Even if a debt is outstanding according to a contract signed by both parties, a court must first examine the evidence in the case, which it will only do if the creditor sues the debtor. Only after winning this suit can the creditor file a motion to get a lien or a garnishment.

Liens

    Liens are significantly rarer than garnishments. A lien is a legal order stating that a person must pay a certain amount of money to an outside party before transferring ownership of a particular piece of property. A party can only get a lien placed on a debtor's property with the approval of a judge. Extrajudicial liens have no legal standing, and cannot be enforced by the debt collector.

Garnishments

    In addition to a lien, a debt collector can also seek a garnishment. If a creditor is eligible to receive an order to garnish a debtor's wages, this does not mean he is eligible to receive a lien, and vice-versa. If a creditor is eligible to file both, then he can choose to do so at the same time. However, whether a judge will accept both at the same time depends on the rules of his jurisdiction.

Considerations

    Federal laws allow significant latitude to states and cities in making debt law. Each jurisdiction has its own debt collection laws and court procedures. The only way to know for certain whether a lien and a garnishment order can be filed simultaneously is by consulting with the court that is hearing the case, or with a local attorney who knows debt law in that jurisdiction.

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