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Judgment Enforcement – The Step-by-Step Course

Got to your secretary of state’s website, and look for UCC Liens. They may have a

particular form for involuntary liens (judgment liens) or there may be a single form for
voluntary and involuntary liens, both. In Texas, for example, they use the same form for
voluntary and involuntary liens, but there’s a place to check off “Involuntary.”

Why is this lien helpful to us? Because if the JD files bankruptcy, you may be intitled to

some of the assets because of your lien. Or, if he sells his property to evade us, we can
claim a fraudulent transfer, and have it set back. That can be big.

Question: If I put a lien on the JD’s real property, is payoff eventually
guaranteed?

A. If the lender forecloses, you’ll most likely lose your lien. And, if the debtor files
bankruptcy, in a few instances the lien can be removed, what is called “avoided,” if
it impairs the homestead. In most other instances, the lien is good and you’ll get
paid.

Question: What if my JD transfers the property to his wife? Or friend? Or his
brother-in-law?

A. If it’s transferred out of the JD’s name, the lien will go with it, if you have it down.
Your lien is still good. This has happened to me about 5 times, and I got paid each
time because the transfer was fraudulent, and I took appropriate measures. (More on
the forum about how to handle this. Also, see “The Badges of Fraud” in a later
section. )

Bank Levies

Step 4: How to do a bank levy (also called a ‘bank garnishment’.)

If you have a better debtor, there will very likely be a bank
account. You can seize the contents of the account or accounts
except for exempt property like social security money, in some

states retirement money, or something else. Some states are
creditor friendly, and some are more debtor friendly. Check the
exemptions in your state, for sure. If your JD is on minimum wage,
don’t bother. He or she is not a better debtor.

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