If an owner of an interest in real property has had a judgment obtained against him or her, this form addresses a release of that judgment lien.
A New York Release of Judgment Lien by Creditor is a legal document that signifies the satisfaction of a judgment lien placed on a debtor's property by a creditor in the state of New York. This document serves as proof that the debt has been settled or otherwise resolved, and the creditor has released their claim on the debtor's property. The release of a judgment lien is crucial for the debtor as it allows them to regain control of their assets and property, providing them with more financial flexibility. The New York Release of Judgment Lien by Creditor procedure may vary depending on the specific circumstances and the type of lien being released. Here are four different types of New York Release of Judgment Lien by Creditor: 1. Voluntary Release: This type of release occurs when a creditor willingly agrees to release the lien on a debtor's property. It typically happens when the debtor has successfully fulfilled their debt obligation or negotiated a settlement agreement with the creditor. The creditor voluntarily waives their right to the lien, allowing the debtor to regain full ownership and control over their property. 2. Release Upon Satisfaction: In cases where the judgment debt has been fully paid or satisfied by the debtor, the creditor can file a Release of Judgment Lien. This document formally acknowledges that the creditor's judgment has been fulfilled, and the lien is no longer necessary. Once this release is recorded with the appropriate government agency, the lien is removed from public records, and the debtor's property is free from encumbrance. 3. Release by Consent: Sometimes, the debtor may enter into a settlement agreement with the creditor in which both parties agree to a modified payment plan or other alternative form of resolution. In these situations, the creditor may choose to release the judgment lien as part of the negotiated settlement. This Release of Judgment Lien by Consent acknowledges the terms of the agreement and releases the lien after the fulfillment of the agreed-upon conditions. 4. Release by Court Order: In certain cases, the debtor may petition the court to release the judgment lien if they can prove grounds such as payment, satisfaction of the debt, or other valid reasons. Once the court approves the debtor's request, a Release of Judgment Lien by Court Order is issued, effectively terminating the lien on the debtor's property. It is important to note that the specific requirements and procedures for each type of New York Release of Judgment Lien by Creditor may vary. It is advisable for debtors and creditors alike to consult with legal professionals experienced in New York state law to ensure compliance with the appropriate procedures and documentation.
