What is a judgment lien?

A judgment lien is an order from a court that gives a creditor the legal right to take possession of a debtor’s property in order to pay off the debt. This lien is placed on all property owned by the debtor, including real estate and personal property. If the lien is not satisfied, the creditor can take the property, sell it, and use the proceeds to pay off the debt. In New Hampshire, the Consumer Debt Defense Law caps the amount of any lien that can be placed at $2,000. This law helps to protect consumers from potential abuse by creditors. If a creditor is found to have violated this law, they can face criminal penalties, including fines and jail time. The Consumer Debt Defense Law also sets forth other protections for consumers, such as limits on collection activities and requirements for lenders to inform borrowers about their rights. By understanding these rights and the limits of liens, consumers in New Hampshire can better protect themselves from creditors.

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