Tax liens are in short, liens that are placed upon an individual’s real property when they owe taxes to either the state, federal, or municipal government. A tax lien can also result in a garnishment of your wages. Tax liens will expire after a ten-year period- but most individuals prefer to seek a way to remove the tax lien to avoid the financial burden.
Removing a Tax Lien From Your Credit Report
One way to remove the tax lien is to just pay it. However most people would’ve never ended up with a tax lien, if they could just pay it. Negotiating repayment with the agency that filed the lien is another way to get the tax lien removed. A lot of times after repayment of a certain amount are completed, the tax lien will be lifted or at least reduced to reflect the current amount owed. Individuals can also file an appeal of the lien, if you are successful in your appeal the lien will have to be withdrawn. If you sell the property that the lien is filed on, then it will paid out of the proceeds of the sale.
There are instances where an individual has paid off their past due taxes and the lien still is reflected on their credit report. In this instance providing proof of the paid lien to the credit agencies is your first step. After this then make sure to dispute the debt with every agency. If you have paid the lien they will be required to remove it from your report.
Seeking Legal Help
Attorneys that assist individuals with legally addressing debt are an excellent resource when seeking to remove a tax lien from your credit report. Tax attorneys that have experience with working with tax liens are excellent at assisting individuals with getting relief. Don’t try to remove the lien yourself- choose a lawyer with experience to guide you along the way.