Full question:
Can a bank, through their collection agency, put a lien on my property for non payment of credit cards?
- Category: Judgment Liens
- Date:
- State: New Jersey
Answer:
A lien is a legal claim on property to secure payment of a debt. It typically arises from a contract or by operation of law. There are two main types of liens: particular and general. A particular lien is a claim to retain property due to money or labor invested in it. Liens can be created through express or implied contracts, or by the legal relationship between parties, such as with common carriers and innkeepers.
To establish a valid lien, the claimant must have ownership or a right to the property and must possess it with the consent of the owner. The lien must arise from an agreement and should not contradict the contract's clear terms. If the debt remains unpaid, the lien holder may have the right to foreclose on the property. Generally, liens can be removed by paying the owed amount, which can happen up until the closing documents for a property sale are signed.
If a contract is breached, the injured party may sue for damages. If successful, the court can create a judgment lien on the debtor's assets if the debtor fails to pay the judgment.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.