Creditors with judgment liens are protected against claims that arise after the lien is recorded. Which option is correct?

• A. Protected against claims arising after lien is recorded
• B. Protected against all claims
• C. Protected against claims arising before lien is recorded
• D. Not protected at all

Answer: (A)

Recording a judgment lien creates a secured, notice-based claim against the debtor’s real property that takes priority based on when the lien was recorded. Once it’s on the records, that lien generally outranks claims that arise after it, so in a sale or liquidation the lien holder’s claim is satisfied before later-added encumbrances. In other words, later claims can’t leapfrog over a properly recorded judgment lien; they must wait behind it to the extent of the proceeds available. This explains why the correct statement is that creditors with judgment liens are protected against claims that arise after the lien is recorded. (Older claims or taxes can have different priorities, though, which is why they aren’t implied to always be behind.)