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What is a Lien?

When it comes to enforcing court orders and getting businesses or individuals to pay their debts, liens are an effective tool. A lien is nothing more than an order from the court stating in an official capacity that Party A owes money to Party B. 

However, the order from the court is attached to the title of the property that is owned by Party A. After that point, the property is permanently off-limits for sales, transfers, or gifts of any kind. If Party A is successful in selling the property, then the money that Party B is owed will be deducted from the proceeds of the sale and paid to Party B.

In matters involving personal injuries, liens are used frequently, but their application can take a number of different forms. If you win your case, you can use a judgment lien to enforce the rights you have as a victim of the crime. On the other hand, a lien against a settlement is used to ensure that the victim legally gives insurance companies their fair share of the award.

Judgment Liens

Imagine that you are struck by a driver who does not have insurance. You take them to court, and the judge decides that you are entitled to monetary compensation for the injuries you sustained. The uninsured driver is now obligated to pay you personally for the damages they caused, but what happens if they don’t? Your auto accident attorney will most likely file a judgment lien against them, given the circumstances of this case.

The judgment lien could be placed on any of the debtor’s assets, including their car, boat, real estate, or even their primary residence (although there are typically restrictions on being able to place liens on someone’s primary residence). They will be able to get the lien removed if they fulfill their obligations to you and pay back the money that they owe you. But if they don’t, you won’t have to worry about getting your money back because it will come from the sale of their property. You are safeguarded by this type of lien.

Liens Against Your Settlement

If you were involved in a car accident and the other driver did not have car insurance, who pays? It’s possible that you had to pay out of pocket, but it’s also possible that your own health insurance covered the cost of your treatment. 

In this instance, your insurance company ended up paying for something that should have been covered by their policy. To put it another way, your insurer suffered a financial loss.

This is known as a subrogation right, which gives your insurer the right to a portion of the money that the other driver pays you. After all, if they paid $10,000 in medical expenses, then they ought to get $10,000 of the settlement for your injuries as compensation. Your settlement might be subject to a lien from the insurance company if this scenario plays out.

This type of lien continues to be in effect until you finally receive payment from the party who was responsible for causing the injury. After that, the lien serves as a guarantee that the insurer will receive their portion of the settlement.

It’s best to contact a car accident attorney if you were involved in an accident that you believe was caused by someone else’s negligence, especially if they were uninsured. 

Your auto accident attorney will handle all the necessary paperwork and make sure you receive the appropriate amount of compensation for your losses.

Contact The Brown Firm to schedule a free personal injury consultation today.

What Impact Does the Abstract Have on Property Transfer?

Any transfer of property results in the creation of rights, but it may also bring with it liabilities. There are various ways to transfer property, all of which include the real estate’s title. Title transfers (deeds) come in a variety of forms, including:

  • A warranty deed makes claims about the title. Technically, it does not guarantee that the title is fair and marketable, but it does declare that the seller will protect your ownership interests in the property if the title is contested by another party.
  • Similar to a warranty deed, a limited warranty deed restricts the extent to which the parties will defend the deed (such as against particular classes of people or claims)
  • A quitclaim deed is a transfer deed that simply transfers all of the seller’s rights in the property to the buyer; it makes no promises whatsoever.
  • When a person is chosen by the court in a probate case to transfer property to an heir or another party, an administrator’s deed manifests. The official term of the deed changes to “executor’s deed” if a will is included to reflect the fact that an executor, not an administrator, completes the transfer.

If you’re in a disagreement over anything that happened on someone else’s property, especially something like a slip-and-fall or careless security, make sure you contact an experienced Personal Injury Attorney for legal help.


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