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, also known as an Abstract of Judgment, is a legal document used to release or discharge a judgment lien that has been filed against a property. When a judgment is issued in Colorado, it becomes a lien on any real property owned by the debtor. However, once the judgment is satisfied or the lien has been released, this document is crucial in ensuring the lien is no longer attached to the property. The Colorado Release of Judgment Lien — Abstract of Judgment serves to notify the public and other interested parties of the release of the judgment lien. It provides essential information about the judgment, including the case number, names of the debtor and creditor, the date the judgment was entered, and the amount owed. This document certifies that the lien has been fully satisfied or released, clearing the property's title from any encumbrances associated with the judgment. In Colorado, there are several types of Colorado Release of Judgment Lien — Abstract of Judgment forms based on the circumstances of the release: 1. Voluntary Release: This type of release occurs when the debtor satisfies the judgment in full, either by paying the entire amount owed or reaching an agreement with the creditor to settle the debt. 2. Satisfaction of Judgment: If the judgment is satisfied through payment or other means, the creditor can file a Satisfaction of Judgment form with the court. This document confirms that the judgment has been fulfilled, and the lien can be released. 3. Partial Release: Occasionally, an agreement is reached between the debtor and creditor to release the lien partially, allowing the debtor to sell or refinance a portion of the property while still securing the remaining portion with a judgment lien. 4. Mistaken or Invalid Lien Release: In situations where a judgment lien release is believed to be mistakenly filed or invalid, a debtor may file a request for a certificate of discharge of mistaken or invalid lien release. This process helps rectify errors and address any disputes related to the release. It is important to consult with an attorney or legal professional when filing a Colorado Release of Judgment Lien — Abstract of Judgment to ensure all relevant information is accurately documented and processed. By properly completing this document, debtors can remove a judgment lien from their property title, restoring the property's marketability and financial freedom.
