Yes, a creditor can put a lien on your house for unsecured debt like a credit card balance or medical bill, but not directly. The creditor first has to sue you, win a money judgment, and then record that judgment against your property in the county where the home sits. Only after those steps does a lien attach to your title.
The Lawsuit Comes First
Unsecured debt has no collateral behind it, so the creditor’s only route to your house runs through the courthouse. You’ll receive a summons and complaint stating the amount claimed and giving you a deadline to respond.
Ignoring the lawsuit is where most homeowners lose. If you don’t answer, the creditor wins by default and the court enters a default judgment carrying the same enforcement power as if there had been a trial. Research from the Pew Charitable Trusts found that more than 70% of debt collection lawsuits end this way because the debtor never responds. The Consumer Financial Protection Bureau warns that a default judgment can allow the creditor to garnish wages, freeze bank accounts, and place a lien on your property.1Consumer Financial Protection Bureau. What Should I Do if I’m Sued by a Debt Collector or Creditor Responding to the suit, even with a simple answer contesting the debt, is the single most important thing you can do to protect the house.
How the Judgment Becomes a Lien
Winning the judgment does not automatically create a lien. The creditor has to take a second step: obtain an abstract of judgment from the court and file it with the county recorder’s office where your property is located. Once recorded, the abstract creates a lien on any real estate you own in that county. Property in a different county requires a separate recording there.
The lien takes effect on the recording date. In many jurisdictions it also attaches to property you acquire later in the same county while the judgment is still active. It sits junior to any liens already on the property, like your mortgage, but takes priority over anything filed after it.2Legal Information Institute. Judgment Lien
What the Lien Does to Your Home
A judgment lien doesn’t push you out of the house or change how you live in it. It sits on your title and gets paid when you try to move the property. When you sell or refinance, the title company’s search flags the lien and it has to be cleared from the proceeds before you receive anything. Most buyers and lenders won’t close until it’s resolved.
The balance grows while it sits there. Unpaid judgments accrue post-judgment interest. In federal court that rate is set from the weekly average one-year Treasury yield for the week before judgment was entered, compounded annually.3Office of the Law Revision Counsel. 28 U.S. Code 1961 – Interest State courts set their own rates and some run substantially higher. A $15,000 judgment at 6% adds nearly $1,000 a year to the balance.
Forced sale is legally possible but uncommon for unsecured-debt liens on a primary residence. Homestead exemptions and existing mortgage balances usually leave too little reachable equity to make it worthwhile for the creditor. On investment properties, second homes, or houses with substantial equity above the mortgage and exemption, the risk is real.
Homestead Exemptions Are Your Main Shield
Homestead exemption laws protect a portion of your home equity from creditors, and this is the main reason judgment lien holders rarely take primary residences. The amount protected varies dramatically by state; a few offer unlimited protection, while others cap it at set dollar amounts.4Legal Information Institute. Homestead Exemption The exemption applies only to a primary residence and typically covers the home, outbuildings, and surrounding land. Some states require you to file a declaration of homestead with the county before the protection takes effect, so it’s worth checking your state’s rule before any lawsuit is on the horizon.
Homestead protection has limits. It generally does not shield you from mortgage foreclosures, IRS tax liens, or unpaid child support.
How Long the Lien Lasts
The creditor has to sue within the statute of limitations. Most states give between three and six years for unsecured debts, though some allow up to ten years for written contracts or promissory notes, and the clock’s start date depends on the state and the type of debt.5Consumer Financial Protection Bureau. Can Debt Collectors Collect a Debt That’s Several Years Old Once that window closes, the creditor loses the right to sue, though some still try.
Watch out for restarting the clock. Making a partial payment on an old debt, or even acknowledging in writing that you owe it, can reset the statute of limitations in many states, sometimes on a debt that had already expired.5Consumer Financial Protection Bureau. Can Debt Collectors Collect a Debt That’s Several Years Old Negotiating a settlement can have the same effect. Learn your state’s rule before you send a dollar or admit anything on the phone.
Once recorded, the lien has its own lifespan tied to the judgment. State judgments typically last between five and twenty years. Federal court judgment liens last 20 years and can be renewed for another 20 with court approval.6Office of the Law Revision Counsel. 28 U.S. Code 3201 – Judgment Liens Most states allow creditors to renew before expiration, and some allow unlimited renewals. If the creditor doesn’t renew, the lien expires and you can petition the court to have it cleared from the record.
Getting the Lien Off Your Title
Paying the debt in full is the direct route. Once paid, the creditor is required to file a release of lien with the county recorder. If they drag their feet, most states have a procedure to compel the release, sometimes with penalties for unreasonable delay.
Settling for less is realistic on older debts, especially when the creditor doubts full collection. Any settlement needs to be in writing and needs to specifically require the creditor to record a lien release when they receive payment. Get that language in the agreement before you send money, not after.
You can also challenge the lien directly. Common grounds include procedural errors in how the judgment was obtained or recorded, lack of proper service of the original lawsuit, or the judgment having already expired when the lien was filed. If the underlying judgment was a default and you were never properly served, you may be able to have the judgment vacated entirely, which takes the lien with it.
Bankruptcy Doesn’t Automatically Remove the Lien
This trips up homeowners constantly. Bankruptcy can discharge the underlying debt so you no longer owe it personally, but the lien on your house survives the bankruptcy unless you take a separate step to remove it. Liens do not wash off automatically.
That step is called lien avoidance. Under federal law, you can avoid a judicial lien to the extent it impairs an exemption you’re entitled to, such as your homestead exemption.7Office of the Law Revision Counsel. 11 U.S. Code 522 – Exemptions The court adds up the judgment lien, all other liens on the property, and the exemption you could claim; if the total exceeds the property’s value, the judicial lien impairs the exemption and the court can strip it partially or entirely. The federal homestead exemption in bankruptcy protects up to $31,575 in home equity as of April 2025, though most states have opted out of federal exemptions and require debtors to use the state system instead.
If you file bankruptcy and skip lien avoidance, the creditor can’t come after you personally anymore, but the lien stays on your title. When you eventually sell the house, that old lien still gets paid from the proceeds. It’s one of the most expensive mistakes a homeowner in bankruptcy can make, and it’s easy to avoid by raising lien avoidance with your attorney at the outset.