The process to get a lien is similar in all states. Typically, a creditor files a lawsuit against a debtor for repayment, and if the court validates the debt, then the creditor is awarded a judgment. After filing additional paperwork with the local sheriff, the creditor can enforce the judgment by placing a lien against the debtor's property. While the process is the same in Florida, certain property, including a home, may be exempt from most creditor liens.
Florida Lien Process
After obtaining a judgment in the state of Florida, a creditor must get a certified copy of the court judgment and record it with the county clerk. This allows the creditor to get a writ of execution, which authorizes the county sheriff to satisfy the terms of the judgment by seizing the property of the debtor. If the debtor does not lodge any objections to the seizure, the property will eventually be sold at public auction with proceeds used to pay off the judgment.
Homestead Exemption
Florida has homestead protections for resident debtors that can prevent a judgment creditor from seizing a home. According to the Florida Constitution, a debtor's home cannot generally be subject to any lien, judgment, or forced sale. Notable exceptions include tax liens, mortgage liens, or debts incurred for the improvement of the home, such as a home improvement loan. What this essentially means is that as a resident of Florida you are exempt from most judgment liens if your only property is your home.
Wage Garnishment
A creditor with an judgment has the power to not only file a lien against property but also to garnish wages. Federal law typically allows a judgment creditor to garnish as much as 25 percent of a debtor's disposable income, defined as the amount in excess of 30 times the minimum hourly wage per week. However, if you are the head of a household in Florida, you cannot have your wages garnished unless you agree to the garnishment in writing.
Bankruptcy
Even in the face of a bankruptcy discharge, a creditor can enforce a lien against property in Florida. A bankruptcy discharge doesn't have the power to eliminate existing liens. While the debt that triggered the original lawsuit and judgment may indeed by dischargeable in bankruptcy, a lien attached to property must still be paid off in order to dismiss it.
0 comments:
Post a Comment