By Robert Wenzel
If and when a bill is not paid in a timely fashion, then one available option is attaching a secret lien. A secret lien is a type of lien that does not appear in any form on the record of a person or company. In addition, the lien would not be noticed by a consumer or purchaser.
Rather, the secret lien is hidden by outside, third parties and reserved by sellers so that they may collect payment after goods have been delivered.
Once a secret lien is placed against an individual, a lien for one year is placed against all of the person’s non-exempt property, regardless of whether or not the person has control of their possessions.
Furthermore, this type of lien may not be recorded with any type of agency or published in any way. In fact, oftentimes these liens are so secret that an individual may not even know that they have a lien against them.
A secret lien can be established for several reasons. First, this type of lien may be used in an attempt to get a person to pay an outstanding debt that they may have avoided. In addition, a secret lien may be utilized to bring an individual to begin discussing settlement of the debt. The secret lien can be a tool for a person to avoid any public repercussions, such as having the general public know about this debt. Having the debt become public knowledge can also be an embarrassing experience for someone, especially if it is an individual is well-known or in a position of trust.
At the same time, secret liens are sometimes used in bankruptcy cases in an attempt to collect some of the money that is owed to a creditor. These liens may also be used in litigation after a judgment has been awarded but the party has been unable to collect any part of the verdict.
When a company or person chooses to collect on the lien, a turnover order can be issued. The order requires the individual in question to deliver any money or possessions that are in their possession to the creditor on the spot.
If an individual becomes aware of a secret lien against them, it could be a good idea to meet with a business attorney. The lawyer would have a better idea of how this type of lien works and what the best strategies are to deal with the lien. In addition, an attorney may be able to shed some light on how the person could deal with the special lien while still maintaining some of their possessions and/or assets.