We previously published a blog post explaining what the abstract of judgment is and why it matters to judgment creditors. The post led to a secondary question among some of our clients: what does ‘indexing’ an abstract of judgment mean?
Indexing is a technical term relating to how an abstract of judgment is filed with the court. In most states, a judgment is not legally enforceable until this process is complete. Furthermore, indexing an abstract of judgment in some states automatically establishes liens on a debtor’s nonexempt property. Texas is one such state.
More About the Actual Abstract
As explained in our previous post, an abstract of judgment is more or less a written summary of the court’s decision. It includes all the key details of the case, including the amount of the monetary award and any other monies the debtor owes. Whether authored by the county clerk or someone else, the clerk certifies the abstract of judgment at the time of indexing.
County clerks must follow a specific process for indexing. This process guarantees that anyone searching the county’s official property records will be able to find the abstract with minimal to moderate effort. This includes:
- Creditors and their attorneys
- Title companies
- Property buyers
- Lenders (banks and private lenders)
If an abstract of judgment isn’t properly indexed, it may not be searchable. That could create problems for individuals or entities to whom such information is important.
Abstracts of Judgment and Liens
Indexing gets its name from the fact that recording a judgment assigns it a place in the court’s official index. In states where abstracts of judgment automatically generate property liens, indexing is critically important. Clerks need to get it right or they risk harming a judgment creditor’s ability to collect.
For instance, an improperly indexed abstract might not automatically trigger the liens a judgment creditor is expecting. Without knowledge of such circumstances, a creditor would not be able to take full advantage of property liens to encourage payment.
In a state like Texas, where collection options are more limited compared to other states, property liens are extremely important. So improperly indexed abstracts getting in the way of automatic property liens create problems for creditors.
Indexing Makes It Enforceable
For all intents and purposes, indexing an abstract of judgment is what makes the judgment enforceable. Once recorded by the clerk and entered into the court’s official index, the indexed abstract gives a creditor the opportunity to move forward with collection. The creditor is otherwise stopped in his tracks.
Also, an abstract of judgment is the only thing that gives a creditor legal claim to nonexempt property owned by the debtor. So if an abstract isn’t indexed properly, a creditor’s claim essentially doesn’t exist.
It’s a Complex Proposition
Don’t feel bad if you are confused by all of this. Unless you are in the legal or collection fields, you wouldn’t be expected to know all the ins and outs of abstracts of judgment. It is a complex proposition, that’s for sure. But its complexity is one of the reasons we do what we do.
Here at Judgment Collectors, collecting judgments is our entire focus. It is our purpose. We are driven to assist clients struggling to collect unpaid judgments in nearly a dozen states. We might be able to help you collect your judgment.
Reach out and let us know what you’re working on. We will look at your case before explaining if and how we can help. Note that if we take your case, you don’t pay a dime unless and until we succeed.