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Words From Legal: What is a Claim of Lien?

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What is a Lien?

A lien is a legal right or claim against a property by a creditor. Also are typically used as collateral to satisfy a debt. This action provides security by giving an organization or individual the right to take possession of an asset or to take legal action to satisfy obligations or debts.

Liens are commonly placed against property, such as homes and cars, so that creditors, such as banks and credit unions, can collect what is owed to them. It acts as a guarantee of an obligation, such as repaying a loan. A person or organization that files a lien is known as a lienholder.

Categories of Lien


specific lien is a right that you have to take something. It has priority over general liens and it can be enforced against the property of the person who owes your debt. A general lien, on the other hand, is not an enforceable right and does not give you priority over any other liens.

The key difference between a specific and a general lien is priority–specific liens are prioritized before those with only a general lien. It do not become enforceable until they are paid off or subordinated to another more senior claim on the property in question.


If you find yourself in a position where you owe money to someone else, it is important that you understand the difference between voluntary and involuntary liens.

A voluntary lien is a type of security interest created by the agreement of two parties. It does not require any outside funding, as it is created by an agreement between those involved in the transaction. Example: Mortgage lien, title lien

Involuntary liens are filed by creditors when they believe that a person or business owes them money. This are a serious issue in the construction industry. According to the American Institute of Architects, involuntary liens occur when a contractor has finished their work on a project and is paid for it but then finds out that they have been left with an outstanding lien from another party who did not get paid. Examples: IRS tax lien, mechanics lien

Types of Lien

There are three common types of liens: statutory, consensual, and judgment and all of them provide protection for the lienholder in some way. Below are some of the most common liens.

  • Statutory lien

A statutory lien occurs when you borrow money from someone such as a bank, credit union, savings and loan association, etc., and it gives that organization priority over any other claims against your assets if there is ever a default on payments.

  • Tax liens

Tax liens are a public record that is kept by the government of your local county for any outstanding taxes you owe. You have a tax lien if you owe back taxes to the IRS and they place a lien against your property.

It will show up on your credit report, and it can be very hard to get loans, rent an apartment or even buy a car if one has this kind of information on their credit report. You can also have a lien placed against you as a result of unpaid property or estate taxes.

  • Judgment liens

A judgment lien is a type of security interest which is filed by the court with the county recorder’s office to provide notice of the judgment debtor’s obligation to pay money owed to somebody else. It does not matter if this person has already paid back their debt, they will still have a judgment lien on them until it expires in 4 years.

  • UCC liens

The UCC (Uniform Commercial Code) liens are powerful tools to use when the debtor is refusing to pay their debt. It secures the creditor’s position in case of bankruptcy or insolvency.

UCC liens can be used on some personal property, including items like cars and houses. It will secure payment for a creditor, even if they do not have ownership of the item.  Lien laws vary by state so it is important to consult with an attorney who practices in your area before filing a lien on any property. Creditors should also take care when using this tool because once filed, it cannot be rescinded unless agreed upon by both parties involved in the transaction or through court order.

  • Mechanic’s liens

A mechanic’s lien is a type of security interest granted to mechanics, suppliers, subcontractors or others who have performed work or provided materials to improve real property. It is a legal claim on an asset in order to be paid for work done or services rendered.

Mechanics liens are typically enforced through the use of foreclosure proceedings. The law governing mechanics’ liens varies by state and sometimes even within individual states. The most common type is when a contractor does not get paid by the owner of the property they worked on.

Get Rid of Lien

It’s time to start living within your means. If you’re strapped for cash, it can be tempting to buy something on credit or spend more than what you have. But overspending will only lead to more of the same problem – not a solution. You need an easy way out of this cycle!

If you have a lien on your property, there are ways to keep it from being recorded. You can do this by paying off the debt that is owed or negotiating with the company who has placed the lien on your property.

There are some other things you can do as well, such as filing for bankruptcy. But before filing for bankruptcy, there are alternatives that are worth exploring. They are less costly than bankruptcy and likely to do less damage to your credit record.

By taking some of these steps, you could potentially avoid or lessen having a lien put on your property in order to protect yourself and those close to you. Get started today! Were here for you, hire an experienced lawyer to take care of everything for you.

You may need to bring legal action in case of a disagreement against the lienholder to have a lien released. You can investigate whether claims are still valid. Liens may expire after several years. We at Roxell Richards Law Firm can help ensure that you’re following the procedure correctly in order to avoid making the situation worse.

Call us at 1-855-GOT-INJURED or click here  complete the form for a case review.

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