Hot on the heels of law suits filed to collect defaulted loans are the judgments the courts award the creditors. Although the judgments essentially mean the creditor wins and the debtor loses, the debtor's loss may not be a total one.

It is not unusual for judgments to be negotiated and resolved after the fact. Sometimes, it may be possible for the debtor and creditor to continue doing business even considering the prior strained circumstances.

Judgment resolution is sometimes required before the sale or purchase of a business or business real estate can be closed. It is not unusual for judgments to be kept alive long after the original matter is closed (or ignored or forgotten).

Liens are a claim by a creditor against something the debtor owns. Many times businesses willingly give creditors liens, particularly when money has been borrowed to buy specific assets such as vehicles, machinery, etc. However, sometimes creditors obtain liens as a result of collecting a defaulted obligation. When that occurs, liens become a "creditor wins - debtor loses" situation. Liens against business assets can also arise from non-payment of certain taxes, premiums, or fees.

Liens can affect a business' ability to obtain needed credit or dispose of unnecessary or undesirable assets. Depending on the liens' age and the surrounding circumstances, resolution through settlement may be possible.