Judgment Lien
A claim placed on a business's property as the result of a court judgment, giving the judgment holder a legal right to that property until the judgment is satisfied.
A judgment lien typically arises after a creditor sues and wins a court judgment against a business, then records that judgment to attach it to the business’s property or assets as a way to help ensure eventual payment.
An outstanding judgment lien can significantly affect a business’s ability to obtain new financing, since it signals unresolved legal and financial risk to any lender reviewing the business’s public record.
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