Abstract of judgment texas12/25/2022 Not only is this incorrect, but failing to take the extra steps can impact priority vis-a-vis other creditors. We have seen many cases where practitioners assume that a federal court judgment automatically creates a lien on the real property in the state where the court is located. But if state law does not so direct, then filing a notice of a judgment lien in the federal district court clerk’s office suffices. " unless "the State has not by law designated one office which meets the requirements of subparagraph (A)" then "n the office of the clerk of the United States district court for the judicial district in which the property subject to the lien is situated." In other words, if state law directs where a lien is to be filed, follow state law. § 6323(f), directs that "n the case of real property, in one office within the State (or the county, or other governmental subdivision), as designated by the laws of such State, in which the property subject to the lien is situated. A lien created under this paragraph is for the amount necessary to satisfy the judgment, including costs and interest." The relevant Internal Revenue Code, 26 U.SC. § 3201(a) provides as follows: " judgment in a civil action shall create a lien on all real property of a judgment debtor on filing a certified copy of the abstract of the judgment in the manner in which a notice of tax lien would be filed under paragraphs (1) and (2) of section 6323(f) of the Internal Revenue Code of 1986. § 3201 expressly provides for judgment liens and thus governs the creation of a lien.Ģ8 U.S.C. But Rule 69 also provides that "a federal statute governs to the extent it applies." 28 U.S.C. As a result, many judgment-creditors fail to realize that a federal judgment needs to be created by filing a certified copy of the abstract of judgment with the relevant state authority (typically the county clerk).Ī judgment-creditor may assume that since Rule 69 of the Federal Rules of Civil Procedure provides that the procedure on execution-and in proceedings supplementary to and in aid of judgment or execution-must accord with the procedure of the state where the court is located, that state procedure would govern the issue of creating a judgment lien. Perhaps you litigate in a state where judgment liens are automatically created by virtue of obtaining a judgment. You may think that a federal court judgment automatically creates a judgment lien on real property within the district where the federal court sits or perhaps within the county. This month we discuss obtaining a judgment lien from a federal court judgment. First Tuesday Update is our monthly take on current issues in judgment enforcement.
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