Can My Lawyer Use A Property Lien To Seize My Property Or Settlement For Payment?
Like any service provider, lawyers provide a service for a fee, and expect to
be paid when the job is done. For some, that may mean fronting initial court costs
and filing fees, and then waiting months (or even years), to receive payment for
their services from judgments awarded to their clients due to their diligence
and hard work.
In order to guarantee payment without further court delays, many lawyers opt
to file attorney's liens on client's properties and/or potential settlements
right away - sometimes referred to as a "property Lien". This ensures
that they will receive payment for services without delay when settlements are
finally awarded (and paid), or property sold (especially after a divorce).
Each individual state in the nation has their own governing rules regarding
the rights of clients - and attorney's - in regards to such property liens.
Check with your state attorney's office for details.
What is an attorney's property lien? Attorney' Liens are just that: a lien
placed on personal property, real estate or court awarded settlements by an
attorney for payment due.
A lien is a judgment placed on an individual's personal property or real estate
to secure payment for a debt. It can be placed on your home, car, or any other
property that is worth the amount of the debt owed.
Lawyers have the right to file one of two types of liens (a charging lien or
a retaining lien), on a client's holdings in order to guarantee payment for
their services.
A charging property lien gives the attorney the right to a portion of a judgment
awarded to the client through the direct effort and professional service of
the attorney filing the lien. It may also include costs for court and filing
fees. Until he/she is compensated for their services, they hold a right (or
claim) in the final settlement amount.
A retaining lien, on the other hand, is a less specific type of lien, and extends
to all of the client's property that the attorney might come into possession
of during the course of the lawsuit. These are especially popular in high-profile
divorce proceedings. They may hold claim to some (or all) of the disputed property
until restitution and payment is made to the attorney in charge.
Once a lien is filed, the attorney has the legal right to sell the property
at any time to recoup lost revenue from unpaid service bills. Check with individual
states regarding individual state rules which regulate attorney's liens in your
area.
Property Tax Liens
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