What If The Debtor Dies Before One Can Collect On A Judgment Lien

What If The Debtor Dies Before One Can Collect On A Judgment Lien

If the judgement debtor dies before one can collect on a judgment, the judgment is typically considered ‘uncollectable’ except in cases where the debtor had considerable assets and the judgment is more than a $5,000, then one may want to try collecting using different procedures. If considering this route, seek professional legal counsel to ensure all probate guidelines for the state are followed correctly; however, if the debtor had in place before his death any type of estate planning tools that avoided probate (i.e. a living or irrevocable trust), consider the judgment always null and void. Further, if the debtor owned property with his spouse in ‘joint tenancy’ and a lien is filed against the property, the property would still pass to the spouse free and clear of any liens. Joint tenancy law states that the party does not inherit property and therefore the debtor’s interest in that property and the lien automatically cease when the debtor dies.

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