Reading this article will teach you why you should file a Florida Judgment Lien and the process for doing so.
This is the third article in a series of articles I have put together on how to enforce and collect on a Florida final judgment. The first article “How Do I Collect on a Florida Judgment” introduced the preliminary steps that must be taken after obtaining a final judgment. The second article “Why and How do I Record a Florida Judgment” discussed the specific reason for recording the final judgment and how to do it. The lesson from the second article was that final judgments do not record themselves. If you want to have a lien against the judgment debtor’s real property, recording the final judgment is the only way to do that. Filing a Florida judgment lien is another powerful tool to enhance the collection of a judgment.
Filing a Florida Judgment Lien
Why should you file a Florida judgment lien? As in recording a final judgment, filing a Florida judgment lien also announces to the world you have a lien interest in the personal property of the judgment debtor. Also, filing the Florida judgment lien establishes your priority over other creditors when collecting against the personal property of the debtor. First to record is first in line.
While recording the final judgment in the county records establishes a lien against the real property (land), filing a Florida judgment lien establishes a lien against the personal property (automobiles, equipment, etc.) of the debtor. These are two very different procedures for two very different purposes. The county records maintains the filings for recording a final judgment while the Florida Department of State – Division of Corporations maintains the filings for the Florida judgment lien.
How to File a Florida Judgment Lien
Filing a Florida Judgment Lien is completed online at the website for the Florida Department of State – Division of Corporations (Florida Judgment Lien). To process the filing, you should have a copy of the final judgment at hand as you will need information from the judgment to complete the form. You will need the name of the court, case number, date of the final judgment, judgment amount, and interest rate along with the names and contact information for the parties involved in the case. After completing the form, you will be given an opportunity to pay the filing fee online and your judgment lien will be filed and given a filing number, date and time.
The Effect of Filing a Florida Judgment Lien
Filing the Florida judgment lien establishes your lien rights over the debtor’s personal property and the order of priority for collecting upon a final judgment. For instance, when a creditor seeks to levy upon the personal assets of the judgment debtor, the creditor must check the Florida judgment lien database and list all filings that apply to the debtor. This database is yet another resource for credit bureaus and financial institutions to reference when determining the credit worthiness of a debtor. Finding a Florida judgment lien will raise red flags for creditors that will impact their decision to extend credit to the debtor. Filing the Florida judgment lien will not only preserve your priority position for collection but will also expand the number of places where the final judgment is referenced and indexed for possible location by creditors and credit bureaus.
Related Topics: Florida judgment enforcement; Miami debt collection lawyer; Florida collection law; Florida final judgments
