What Does the Legal Term Lien Mean?

Lien for Taxes

• The government can file a federal tax lien for unpaid assessed taxes which a person refuses to pay. The government sends a notice to the taxpayer itemizing the amount of taxes owing as well as any interest or penalties and demands payment of the full amount within 10 days. A failure to pay gives rise to the lien which is only released upon payment of the debt or submission of an agreed-upon guarantee. A lawyer should be consulted about the validity of a tax lien and about the ability to dispute or remove the lien.
  
  

Mechanic's Lien

• A mechanic's lien may be available to a contractor who has not been paid for work done, or for the supplies provide for work done, on a property. The lien is filed against the title to the property. Enforcement of a mechanic's lien can result in the owner being unable to sell the property or to refinance. There is no standard uniform mechanic's lien so researching the laws applicable in a particular state is crucial (see resources below), as is consulting a lawyer.
  
  

Liens in Civil Proceedings

• A person who successfully sues another in civil court may end up never getting the money awarded by the court if the other party has no assets. If the party being sued does have assets, placing liens on those assets is an important protective step. Real estate liens are created by registering a judgment with the land records office in the county where the real estate lien is located. Parties interested in filing a lien based on a civil judgment to recover against real or personal property should consult with a lawyer.
  
  

Liens in Divorce Proceedings

• Divorce proceedings often revolve around the distribution of both real and personal property. Parties to a divorce proceeding concerned about assets being sold or otherwise disposed of should consult with a lawyer about placing a spousal lien on those assets.
  
  

Warning

• This article is for general information purposes only; it does not constitute legal advice. For advice about the laws applicable to your specific lien situation, contact a lawyer.