If an owner of an interest in real property has had a judgment obtained against the owner, this form addresses a release of that judgment lien.
A Colorado Release of Judgment Lien refers to the legal process of removing or lifting a judgment lien that has been imposed on a property in Colorado. When a creditor obtains a judgment against a debtor, they may file a judgment lien with the county in which the property is located. This lien serves as a public notice that the creditor has a legal claim on the property and that the property cannot be sold or transferred until the debt is satisfied. To release a judgment lien in Colorado, the creditor who obtained the judgment must file a Release of Judgment Lien with the county where the lien was originally filed. This document effectively removes the lien from the property, allowing the property owner to sell or transfer the property without any encumbrances. There are primarily two types of Colorado Release of Judgment Liens: 1. Voluntary Release: This type of release occurs when the creditor willingly releases the judgment lien upon the debtor's satisfaction of the debt. Once the debt is fully paid or a settlement agreement has been reached, the creditor files a Voluntary Release of Judgment Lien with the county. This release states that the lien is no longer valid and can be removed from the property records. 2. Release by Court Order: In certain cases, a judgment lien can be released by an order of the court. This usually happens when the court determines that there was an error or mistake in the original judgment or when the judgment has been satisfied through other means, such as bankruptcy. The court issues an order directing the clerk of the court to cancel the judgment lien, and the clerk subsequently files a Release of Judgment Lien with the county. It is important to note that a Release of Judgment Lien does not automatically remove the judgment from the debtor's credit history. The debtor may still need to take additional steps to clear their credit record, such as disputing any inaccuracies or fulfilling any obligations related to the judgment. In conclusion, a Colorado Release of Judgment Lien is a legal process that removes a judgment lien from a property in Colorado. The two main types of releases are Voluntary Releases, where the creditor willingly releases the lien, and Releases by Court Order, where the court orders the lien's removal. These processes allow property owners to freely sell or transfer their property without any encumbrances from the judgment lien.
