How to Put Up a Bond Against a Lien

A lien can be discharged by filing a bond.
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A lien is a claim to property for the satisfaction of a debt. If you’re indebted to a party, that party can file a lien on your property and dissolve your ownership rights. Once a lien is issued, it’s important that you act quickly. A bond is a written promise to fulfill a legal obligation. Filing a bond against the lien might prevent you from losing title of your property.

Step 1

Secure a copy of the lien. Once a lien is filed with the court, you should be served with a copy as well. Do not discard the lien documents. You will need them as you move forward with your bond proceedings.

Step 2

Act promptly. Often, bonds must be issued soon after a lien is filed. When you receive notice that a lien has been issued against your property, do not wait to initiate the process of securing a bond.

Step 3

Determine the relevant court and authority. Lien laws vary from state to state and municipality to municipality, and you will need to determine which jurisdiction your claim falls under. The relevant authority depends on the status of the lien holder. For example, if the IRS has a tax lien on your property, you’ll have to follow the procedures outlined by the IRS. But if your local auto repairman has a lien on your car, you’ll likely file with your local court.

Step 4

Contact a lawyer. If you are not confident handling the process on your own, contact a legal professional to guide you.

Step 5

Find a surety company. If you don’t have the money required to support the bond, contact a surety company. This is an entity that agrees to pay for financial loss caused by the obligated person’s failure to fulfill the bond promise. The surety will require you to fill out an application for lien release and determine whether or not to act on your behalf. If the surety decides to act on your behalf, it will issue the bond with the proper court and the lien will be discharged. Despite the discharge of the lien, the debtor must still repay all monies owed.

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