Collecting debt can be frustrating for creditors, especially in the case of non-paying debtors. One option for collecting monies owed you is to file a lien against property owned by the debtor. This option is best used when you´ve exhausted other measures since it´s complicated and can become expensive, even for the creditor, due to legal fees and time required to complete the process.
A lien gives a creditor a legal hold over the debtor´s property, making it collateral for debt owed to the creditor. It´s often used for second mortgages, where the creditor places a lien on the home as collateral for the loan. It can also be used for loans against car titles, and some people offer other high dollar items as collateral for large loans. A lien prevents the owner from selling or transferring the title of the property during the time the lien is in effect.