If you’ve been sued, there’s a good chance you may have lost, and a judgment could be entered against you. If a judgment is entered against you, how long is it good for? You could file bankruptcy and get rid of the judgment in most cases, but is it a better idea just to “wait it out” until the judgment is no longer valid and enforceable?
The Length of a Judgment
A judgment is good, and can be enforced, for up to 20 years. That seems like a long time, and it is. A judgment is good for 10 years and Florida allows a creditor to “renew” a judgment before the expiration of the 10 years for an additional 10 years, thus giving a judgment almost unending life.
That’s a long time to be chased down for a judgment.
What Happens in Enforcement?
During the time the judgment is enforceable, the creditor can garnish your wages, or try to take your property. You may have exemptions that protect your property – much of the same exemptions that apply in bankruptcy also protect your property from being taken by a creditor to pay a judgment.
But because the judgment is enforceable for so long, your conditions may change, and although you have no non-exempt property today, there’s no telling what you will or will not have tomorrow. The last thing you want is to come into some money, or some success, only to have an ancient judgment come back to haunt you later on.
Liens on Property
Judgments also can result in liens on your property. The judgment will be recorded in the public records, and any title or lien search will reveal its existence.
If you are a homeowner with homestead property, the judgment won’t result in a foreclosure (other than a foreclosure judgment, of course). However, when you sell your home, the judgment will have to be paid from the proceeds of the sale.
That cuts into what you would get from the sale of your home, and of course, the judgment creditor will want to be paid 100% of what it is owed from the proceeds of the sale.
The lien is good for 10 years, but the creditor can renew the judgment before it expires for another 10 years, meaning the lien will survive for a maximum of 20 years.
The good news is that because of Florida’s homestead protections, a judgment lien cannot attach to homestead property. However, if property stopped being homestead—say, you opted to move somewhere else and keep the home to rent out, or for investment purposes—the lien could then attach to your property.
Bankruptcy avoids all of this, and will, in most cases, wipe out the judgment, and immediately stop any enforcement of it or collection on it. Call the West Palm Beach bankruptcy lawyers at Kelley Kaplan & Eller at 561-264-6850 today.
By Kelley Kaplan & Eller | Posted on July 19, 2021
FAQs
In Florida “no judgment, order, or decree of any court shall be a lien upon real or personal property within the state after the expiration of 20 years from the date of the entry of such judgment.”18 In order to retain a lien for the maximum period of 20 years, the certified copy of the judgment must be recorded ...
How long can a judgment be enforced in Florida? ›
A judgment can be enforced for up to 20 years. Judgments can be renewed after 20 years, although this is difficult and rarely done. The length of a judgment is provided by Florida law, which is found in section 55.081 of the Florida Statutes.
How long is a judgement valid in Florida? ›
A judgment is good, and can be enforced, for up to 20 years. That seems like a long time, and it is. A judgment is good for 10 years and Florida allows a creditor to “renew” a judgment before the expiration of the 10 years for an additional 10 years, thus giving a judgment almost unending life.
How long after judgment can you enforce? ›
You have 10 years from the date the judgment was issued to collect your money. If you cannot collect within 10 years, you can renew the judgment for another ten years by filing the forms called EJ-190 Application For And Renewal of Judgment and EJ-195 Notice of Renewal of Judgment.
What happens if a defendant does not pay a judgment in Florida? ›
If the judgment debtor does not pay, you are entitled to get the sheriff to seize the judgment debtor's property. The seizing of property by the sheriff is called a levy. Once the sheriff has levied on the property, the sheriff will then sell it, and pay you out of the money the sheriff receives from the sale.
What makes a judgment void in Florida? ›
In Florida, a “void judgment” is so defective that it is deemed never to have had legal force and effect, while a “voidable judgment” is a judgment that has been entered based upon some error in procedure that allows a party to have the judgment vacated, but the judgment has legal force and effect unless and until it ...
Can you go to jail for not paying a Judgement in Florida? ›
You can't go to jail for not paying a judgment in Florida. Not paying a money judgment is not a crime.
How can I avoid paying a Judgement in Florida? ›
There are four main ways to not pay a judgment: (1) use statutory exemptions, (2) use protected assets, (3) negotiate with the creditor, or (4) file bankruptcy.
How long does a Judgement lien last in Florida? ›
How long is a judgment lien valid? A judgment lien is valid for 5 years. Florida law allows you to file a second judgment lien to extend the lien for an additional 5 years.
What happens after a default judgement is issued in Florida? ›
With few exceptions, once a default judgment in entered in Florida, a defendant loses their chance to fight the judgment. In other words, it typically does not matter if later on the defendant asserts that the judgment is unfair, uses incorrect numbers, is based on wrong information, or any other number of excuses.
At any time after judgment is entered, a party may obtain a stay by providing a bond or other security. The stay takes effect when the court approves the bond or other security and remains in effect for the time specified in the bond or other security.
Will creditors settle after judgement? ›
You may be able to negotiate a settlement with the debt collector to allow you to pay off the judgment under better terms. In Limited Civil cases (cases for $35,000 or less), if the other side will not agree to a payment plan, you can ask the judge to order a payment plan.
Is it guaranteed that any Judgement will be enforceable? ›
The correct answer is b) False. The statement that any judgement will be enforceable is not guaranteed to be true. When a court issues a judgment, it does not automatically mean that the judgment will be enforced.
Can you be forced to sell your home to pay for a judgment in Florida? ›
The Florida Homestead Exemption
Article X, Section 4 of the Florida Constitution states that a creditor who has a judgment against you for the payment of money cannot force you to sell your home to satisfy that judgment.
How to enforce a judgement in Florida? ›
The judgment creditor may obtain a judgment lien against personal property owned by the judgment debtor by recording a Judgment Lien Certificate with the Florida Department of State. This is required before the Sheriff's Office can levy on personal property under FS chapter 77.
Is Florida a debtor-friendly state? ›
Yes, Florida is a debtor-friendly state. Florida has the strongest homestead exemption in the entire country. In addition, Florida's tenants by entireties exemption allows a married debtor to protect joint assets from separate debt.
What personal property can be seized in a judgement in Florida? ›
The sheriff's department can seize: Personal property: movable things (e.g., cars, horses, boats, furniture, jewelry) owned by the debtor. Real property: land and buildings owned by the debtor.
How do you get a Judgement removed in Florida? ›
Vacating a Florida Judgment
Florida Rules of Civil Procedure 1.540 allows a defendant to vacate of judgment for numerous reasons including: mistake, inadvertence, surprise, excusable neglect, newly discovered evidence, the judgment is void or the judgment has been satisfied.
Can a Judgement be reversed in Florida? ›
The rule does allow the court to relieve a final judgment if the judgment is void. So, because the error caused the trial court to be without subject matter jurisdiction, the order was considered void and vacated.
