Read More – Liens

A lien is a legal claim against some type of property (either personal or real) that secures the payment of a debt. Implied in a lien is the right of the lien holder to sell the subject property (after default occurs) in order to recover the debt owed. Liens can be created in two different ways. First, a lien can be created through the consent of the parties (a “consensual” lien). Consensual liens are created through contract between the creditor and the debtor and include mortgages, deeds of trust, car loans, and other types of security interests. Second, a lien can be created without the consent of both parties (a “non-consensual” lien). Typically, non-consensual liens are created by statute or by operation of law. Such liens include tax liens (for failure to pay taxes), attorney’s liens (for unpaid fees), mechanics liens (for unpaid work done on property or land), medical liens (for unpaid medical bills), and judgment liens.

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