List and Explain the Three Types of Liens Available to Creditors

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The Answer is A judicial lien results from a lawsuit filed by creditors against the debtor. If the creditor is successful in the lawsuit he becomes the judgment creditor and then the judgment itself must be executed by obtaining a lien which could mean simply filing the order.A statutory lien is a lien on the debtor's property authorized by a state statute and varies from state to state as to the process. Some examples of statutory liens are mechanics liens which place an automatic lien on materials used to repair a car without filing a lawsuit.A consensual lien is created when the owner of property voluntarily grants a lien to a creditor such as using personal property as collateral in a secured transaction or with real property when the creditor takes an interest in real property through a mortgage.

List and Explain the Three Types of Liens Available to Creditors

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List and Explain the Three Types of Liens Available to Creditors

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Correct Answer:
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