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 North Carolina Release of Judgment Lien, also known as an Abstract of Judgment, is a legal document that is used to remove a judgment lien from a property in North Carolina. When a creditor obtains a judgment against a debtor, they can file a judgment lien with the county clerk's office, which gives them a legal right to the debtor's property. The North Carolina Release of Judgment Lien is necessary when the creditor has been paid in full or has reached a settlement with the debtor, and they wish to release or remove the judgment lien from the property. This document serves as proof that the judgment lien is no longer valid, offering peace of mind to the debtor and allowing them to freely transfer or sell the property without any encumbrances. There are different types of North Carolina Release of Judgment Lien — Abstract of Judgment that can be filed depending on the situation: 1. Full Satisfaction Release: This type of release is used when the debtor has paid the judgment in full, and the creditor acknowledges the debt is satisfied. The Full Satisfaction Release requires the creditor to sign the document and file it with the county clerk's office, effectively releasing the judgment lien from the property. 2. Partial Satisfaction Release: When the debtor has made a partial payment towards the judgment, the creditor can choose to release a portion of the judgment and retain a lien on the remaining amount. This Partial Satisfaction Release allows the debtor to remove the lien on the portion paid and provides clarity regarding the outstanding balance. 3. Settlement Release: In some cases, the debtor and the creditor may come to a settlement agreement where a reduced sum is accepted in lieu of the full amount owed. A Settlement Release is filed when the terms of the settlement have been fulfilled, and the creditor releases the judgment lien. 4. Vacating the Judgment: If a judgment is later deemed to be incorrect or invalid by the court, the debtor can file a request to vacate the judgment. If successful, the Vacating the Judgment document is filed to remove the judgment lien as it is no longer supported by a legal judgment. It is important to note that filing a North Carolina Release of Judgment Lien — Abstract of Judgment does not automatically remove the judgment lien from the property. It is a legal process that must be followed to ensure the lien is released properly. Furthermore, it is recommended to consult with an attorney or obtain legal advice to accurately complete the required forms and navigate the complexities of releasing a judgment lien in North Carolina.
