There are a lot of people who consistently receive calls and letters from debt collection agencies telling them that they have tax liens. A lot of times, these people aren’t even aware that they need a tax lien help and they probably don’t even remember what the tax lien is all about. Now, if you’re one of those people, here are some ways on how you can deal with your tax lien.
Here are some steps you should take if you want to resolve tax liens:
- Visit a property tax office or courthouse and find out how much money you owe in back taxes.
- Find out how much time you have before the county can collect on the lien by contacting an attorney or researching state laws online.
- Contact the IRS directly and ask them if they would be willing to negotiate with you about paying off your debt over time instead of having all of it due immediately (which could cause financial hardship). This option is fairly common but does not always work because there are no guarantees when dealing with large bureaucracies like this one
- Pay off your debt
If you owe back taxes, you can pay them off in full or enter into an installment agreement with the IRS in order to avoid having your property seized and sold off at auction. You can also pay your delinquent taxes directly to a private collection agency if they’re handling collection of your debt on behalf of the IRS.
- File for bankruptcy
If you need extra time to pay off your debt and can’t afford monthly payments, filing for bankruptcy may be an option for you. The main types of bankruptcies that offer protection against creditors are Chapter 7 and Chapter 13 bankruptcies—but they’re not right for everyone! If you’re considering filing for bankruptcy, talk to a licensed attorney who specializes in consumer law before making any decisions.
If you find yourself confused by tax liens and just don’t know where to begin, this post should be helpful! At the end of the day, once everything is resolved, chances are you’ll be back on track and ready to pay your taxes. And if you need any help along the way, don’t hesitate to reach out to us. We’re here to help.
Monica Davis, Operations Manager for Home Savers Community Group. Specializing in assisting property owners with saving their home with a property tax loan.