Question

If a lien has been created by court action, and it covers all properties of the debtor in that county where it is recorded, it is known as a ________,

1) Judgment lien
2) Mechanic's lien
3) Tax lien
4) Voluntary lien

Answer 1

Answer: judgment lien

Step-by-step explanation:

A judgment lien is a court ruling that gives a creditor the right to take possession of a debtor's property if the debtor fails to fulfill their contractual obligations. It is a nonconsensual lien that is attached to the property without the owner's consent or agreement

Answer 2

The correct answer is a Judgment lien, which is imposed by court action and covers all properties of the debtor in the county where recorded.

Step-by-step explanation:

If a lien has been created by court action, and it covers all properties of the debtor in that county where it is recorded, it is known as a Judgment lien. A Judgment lien arises when a court grants a creditor an interest in the debtor's property to satisfy a court-awarded judgment.

Unlike Mechanic's liens, which are specific to individuals who have performed work on the property, or Tax liens, which are related to unpaid taxes, a Judgment lien typically covers all property owned by the debtor in the jurisdiction where the lien is filed. It is not a Voluntary lien; those are created by the debtor's consent.