Can a Judgment Lien Attach to Jointly Owned Property in Michigan?

In Michigan, whether a judgment lien can attach to jointly owned property depends entirely on how the co-owners hold title. Married couples who own as tenants by the entirety are protected: a lien against only one spouse cannot attach to the property at all.¹ Joint tenants and tenants in common get no such shield — the lien attaches to the debtor co-owner’s interest and leaves the other owners’ shares alone. Identifying which form of ownership governs your deed is the first thing to check.

Tenancy by the Entirety Blocks the Lien

Tenancy by the entirety is a form of co-ownership available only to married couples. The statute is unambiguous: a judgment lien does not attach to entirety property unless the judgment was entered against both spouses.¹ If only one spouse owes the debt, the creditor’s lien has nothing to grip.

The protection lasts only as long as the ownership structure does. Two events end it:

Death of a spouse. The survivor takes the whole property through the right of survivorship. If the non-debtor survives, the property passes free of the lien. If the debtor-spouse is the survivor, the entirety ends and the lien can then attach to the full property.
Divorce. Entirety property typically converts to a tenancy in common or is divided by the divorce decree. Once the protective structure dissolves, a lien that was previously blocked can attach to the debtor’s share.

Anyone relying on entirety protection should treat it as tied to the marriage and the deed. Change either one and the shield can drop.

Joint Tenancy and Tenancy in Common Leave the Debtor’s Share Exposed

Property held as joint tenants or tenants in common does not carry the same immunity. A judgment lien against one co-owner attaches to that person’s interest while leaving the other co-owners’ shares undisturbed.

Partial encumbrance still causes real problems. Title companies flag the lien, so selling or refinancing gets harder because buyers and lenders hesitate to proceed. When a sale does go through, the creditor’s recovery is limited to the debtor’s equity after all senior liens, property taxes, and closing costs are paid.¹ On a heavily mortgaged property, there may be little left for the judgment creditor.

How the Lien Gets Recorded

The creditor starts with a court judgment for a specific sum. The court clerk certifies a notice of judgment lien, and the creditor records that notice with the register of deeds in the county where the debtor’s real property sits. The lien attaches when the notice is recorded, and it reaches any real property the debtor later acquires in the same county.²

One detail catches many property owners off guard: the notice does not need to include a legal description. The lien blankets all real property the debtor owns in the recording county rather than targeting a single parcel.³

How Long the Lien Lasts

A Michigan judgment lien expires five years after it is recorded. The creditor gets one chance to extend it by rerecording a second certified notice, which buys another five years. The rerecording must happen no fewer than 120 days before the original five-year expiration date. Miss that window and the lien dies on schedule.⁴ A lien can be rerecorded only once, so ten years is the maximum lifespan.

Two overrides matter. If the underlying judgment expires before the lien’s five-year clock runs out, the lien expires with it. Filing for bankruptcy does not pause or extend the time period.⁴

The Balance Keeps Growing

A judgment lien is not a fixed number. Michigan applies post-judgment interest at a variable rate: 1% plus the average interest rate paid at auctions of five-year United States Treasury notes during the preceding six-month period, as certified by the state treasurer, compounded annually.⁵ The rate is recalculated every six months based on the January 1 and July 1 Treasury data.

For judgments based on a written agreement that specifies an interest rate, such as a promissory note, the contract rate applies instead, capped at 13% per year compounded annually.⁵ When a jointly owned property eventually sells, the creditor collects based on the judgment balance at that time, not the original amount.

The Homestead Exemption Offers Limited Help

Michigan’s general homestead exemption is among the most modest in the country. It shields $3,500 of equity in a primary residence from creditors.⁶ For most homeowners with meaningful equity, that number provides very little insulation.

The exemption covers the dwelling and its land (up to 40 acres of unplatted rural land, or one lot within a city or village) as long as the debtor owns and occupies it as a primary residence. It does not block a valid mortgage lien.⁶

Bankruptcy is different. Michigan has a separate bankruptcy exemption schedule that adjusts for inflation, and debtors may elect the federal bankruptcy exemptions, which tend to be substantially more generous for homestead protection. The exemption amount that applies in bankruptcy drives the lien avoidance calculation below.

Getting the Lien Off the Property

The most direct route is paying the debt. Once the judgment is satisfied, the creditor must file a discharge of the judgment lien with the register of deeds.⁴ If the creditor drags their feet, MCL 600.2815 gives the debtor leverage. Anyone whose property is wrongly encumbered can demand a recordable discharge, and if the creditor fails to deliver within 14 days, the court can order the lien discharged and award reasonable attorney fees. The creditor also faces a minimum presumed liability of $300 for improperly refusing to release the lien.⁷

Negotiation is another option. Creditors sometimes accept a lump sum below the full balance in exchange for a release, especially when equity is thin or the lien is nearing expiration.

Debtors can also challenge the underlying judgment. If it was obtained through fraud, mistake, or serious procedural problems, a motion for relief from judgment may vacate it and take the lien with it. Courts set a high bar for overturning final judgments, and these motions must be brought within a reasonable time.

Bankruptcy Can Eliminate the Lien

Bankruptcy adds a federal tool. Under 11 U.S.C. § 522(f), a debtor can ask the bankruptcy court to avoid a judicial lien that impairs an exemption the debtor is entitled to claim. The formula: if the judgment lien, all other liens, and the debtor’s claimed exemption together exceed the property’s value without any liens, the judgment lien is avoidable to the extent of that excess.⁸ The calculation does not apply to liens arising from mortgage foreclosure.

In Chapter 7, a debtor can discharge personal liability for the debt and separately file a motion to avoid the lien. In Chapter 13, lien avoidance can be built into the repayment plan rather than filed as a stand-alone motion, and the avoided lien is eliminated when the plan is completed.

Michigan law provides a parallel path on the recording side. Recording a copy of the debtor’s bankruptcy discharge along with the bankruptcy schedule listing the judgment debt with the register of deeds extinguishes the judgment lien, unless a bankruptcy court order finding the debt nondischargeable has also been recorded.⁴ For dischargeable debts, bankruptcy can clear both the personal obligation and the lien itself from the property records.

1
Michigan Legislature. Michigan Compiled Laws 600-2807 – Judgment Lien on Jointly Owned Property
2
Michigan Legislature. Michigan Compiled Laws 600-2803 – Judgment Lien Attachment Conditions
3
Michigan Legislature. Michigan Compiled Laws 600-2805 – Notice of Judgment Lien Contents
4
Michigan Legislature. Michigan Compiled Laws 600-2809 – Judgment Lien Expiration, Rerecording, Tolling
5
Michigan Legislature. Michigan Compiled Laws 600-6013 – Interest on Judgments
6
Michigan Legislature. Michigan Compiled Laws 600-6023 – Property Exempt from Levy and Sale Under Execution
7
Michigan Legislature. Michigan Compiled Laws 600-2815 – Discharge of Judgment Lien
8
Office of the Law Revision Counsel. 11 U.S. Code 522 – Exemptions