Legal Question in Credit and Debt Law in North Carolina

Can a trust but a lien on someone property for money owed the trust? Will it stand in front of all other liens except an IRS lien?


Asked on 10/29/13, 1:28 pm

1 Answer from Attorneys

A trust cannot put a lien on anything. If someone owes money to the trust, then the trust has to sue the person. If the trust recovers a judgment, the judgment may act as a lien upon any real or personal property that the person owns. To collect on the judgment, the trust would first have to serve exemption papers on the debtor defendant. Depending on what is owned and exempted the trust may be able to execute.

Once a judgment is entered, it would take priority only over subsequently recorded liens. Any pre-existing liens, like a mortgage would come first.

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Answered on 10/29/13, 11:24 pm


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