Final answer:
A judgment lien is a court-created encumbrance on a debtor's property after a favorable decision to a creditor, ensuring payment from proceeds if the property is sold. A lis pendens is a notice of a pending lawsuit involving real estate and serves to warn about potential claims on the property's title.
Step-by-step explanation:
Understanding Judgment Lien and Lis Pendens
A judgment lien is an encumbrance on the property of a debtor that results from a court's favorable decision for the creditor. It secures the creditor's interest in the debtor's property, ensuring that if the property is sold, the creditor may be paid out of the proceeds from the sale. On the other hand, lis pendens is a notice that a lawsuit has been filed concerning real estate, which alerts potential buyers or financiers that the property's title could be in question. It does not itself constitute a lien but serves to place would-be interested parties on notice that there is a dispute that may affect the property's title or ownership.
Lis pendens is typically recorded in the local county records where the property is located. It can affect the ability to sell or finance the property, as it signifies potential future claims on the property. A judgment lien is a more direct action as it stems from a legal judgment, giving the creditor a certain interest in the debtor's property until the debt is satisfied. Both are means by which creditors can secure or signal an interest in a debtor's property during or after litigation regarding a debt or property dispute.