Debt Settlement and Property Lien FAQs

The purpose of this series is to answer frequently asked questions about liens and how it affects debt settlement and negotiation. Franklin Debt Relief is not a law firm and the following is not to be considered legal advice. This page is kept current only as our time allows, and the information given here may not be current. We make no guarantees as to the accuracy of the information herein and you should not rely on it. For information about your situation, please consult with an attorney licensed in your state.

What is a lien?

A lien is a claim against an item to secure payment of a debt or performance of some other obligation. There are consensual liens and non consensual liens.

What are some common consensual liens?

Mortgages, car loans, property improvements (mechanics’ liens), and any loans placed against collateral (i.e. a loan against your stereo equipment). The lien is considered consensual because the debtor voluntarily granted the creditor the privilege in order to retain the loan or services in the case of a mechanic’s lien.

What are some common non-consensual liens?

Tax liens, judgment liens, and statutory’ liens. These liens are considered non-consensual because the debtor does not have to give his or her consent in order for the lien to be placed on the property.

What property are non-consensual liens placed on?

Typically non-consensual liens are placed on real estate, but in some cases, they are put on personal property like vehicles.

What can a creditor do with a non-consensual lien on your property?

In theory, a creditor with a non-consensual lien can force a sale of the property. That being said, this is very rarely done and in most cases the creditor will wait until you sell or refinance the property to get paid.

What type of lien would a credit card company be able to attach to my property?

A non-consensual, judicial lien.

Can a judicial lien be wiped out through bankruptcy?

Yes, in many cases, but now always.