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NEWSLETTER ON NEWLY ENACTED FLORIDA STATUTES 55.201-55.209

Ullman & Ullman, P.A.
150 E. Palmetto Park Rd., Suite 650
Boca Raton, FL 33432
(561) 338-3535 Fax (561) 3581
uupa@uulaw.net

Volume 1, Issue 1
February 4, 2002

Judgment Liens on Personal Property

With the Governor's signature on June 13, 2000, Chapter 2000-258 became law, codified as F.S. §§ 55.201-209. Before becoming effective, it was immediately amended and improved in the next session by the Glitch Bill, HB 601. Thus, on October 1, 2001, Florida¹ Debtor-Creditor will leave the Fourteenth Century and enter the Twenty-First. No longer will delivery of writs of execution to a sheriff create inchoate liens on personal property within the county. Instead, creditors holding a judgment will be able to record a "judgment lien certificate" with the Department of State and obtain a lien on all of the debtor's leviable personal property in the state. Prospective buyers, lenders, employers, and landlords will be able to check one central file to discover any judgment lien certificates that may have been filed against an individual in the last five years. The new system will do a much better job of meeting the age-old objectives of American debtor-creditor law: protecting against unfair surprise to innocent parties, and encouraging and rewarding diligent creditors.

This newsletter is designed to provide our clients with a general overview of this recently enacted legislation which has simplified the way money judgments may be secured and enforced in Florida. Essentially, a valid judgment lien gives a judgment creditor the right to proceed against the property of a debtor through certain legal mechanisms, such as garnishments, writ of execution, or other judicial process. Prior to this new legislation, Florida had been utilizing an outdated system, which entailed the docketing of legal papers with the local sheriff of each and every county where the judgment debtor's personal property rested, which would often be an expensive proposition for the judgment debtor who was chasing the creditor across the state merely to satisfy his/her judgment. Effective October 1, 2001, this process has been revolutionized and simplified to the benefit of the judgment creditor.

Florida Statute section 55.201, et seq., has created a new mechanism for obtaining a judgment lien on a judgment debtor's personal property through the filing of a "judgment lien certificate" in just one centralized office . . . the Florida Department of State. This new method will have the effect of creating a lien on personal property of the debtor statewide, rather than only property within the county of docketing, and should remove any uncertainty as to the existence and priority of liens from county to county in writs previously delivered. Additionally, this new law has authorized the implementation of an Internet-accessible database of judgment liens to determine priority in advance. This new judgment lien certificate method merely establishes lien priority of judgments statewide as to personal property, as opposed to real property, anywhere in Florida. A properly filed judgment lien certificate will constitute a lien on the debtor's interest in all personal property which is subject to execution pursuant to Florida Statute section 56.061, other than fixtures, money, negotiable instruments, and mortgages. A lien on these assets will require different post-judgment techniques.

This new law will also affect existing judgment liens. If a judgment creditor has previously obtained a lien, by delivery of a writ of execution to a sheriff, prior to October 1, 2001, a judgment lien certificate must be filed with the Department of State before October 1, 2003 in order to keep the priority of the judgment in lien. The refilling of a judgment lien certificate will allow the judgment debtor to maintain their priority retroactive to the date of delivery of the writ to the sheriff. However, if the judgment creditor fails to file this new judgment lien certificate by October 1, 2003, the previously filed writ will be considered abandoned and of no effect thereafter.

A properly filed judgment lien certificate is effective as of the date of filing, priority being determined by the date and time of day of the filing, and is valid for a period of five (5) years. A judgment creditor can obtain an additional judgment lien certificate only one time after the first expires by filing a new certificate.

Anyone who has previously caused a writ of execution to be delivered to any County Sheriff's Office should file a judgment lien certificate with the Department of State in order to further protect your interests and failing to file a judgment lien certificate will be considered an abandonment of the existing write after October 1, 2003, Although such abandonment does not prelude you from otherwise attempting to secure property in order to satisfy a judgment, any other liens attaching the property to which a judgment lien certificate has been filed will have a priority interest in that matter.

Should you have any questions regarding judgments you hold or about this new legislation, please feel free to contact us.

Sincerely,

ULLMAN & ULLMAN, P.A.
Michael W. Ullman
For the Firm

P.S. This newsletter issue does not address the procedures that need to be accomplished in order to levy (physically seize) assets subject to the judgment lien. Moreover, this new law creates havoc with other post-judgment remedies. These and other issues will be the subject of future newsletters.

¹ Although this newsletter addresses a change to Florida law, it is also equally applicable to every state that has adopted this type of legislation.

The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.

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