Call Today for a Free Consultation
(954) 947-7147
Liens
Debt collectors initiate legal proceedings to obtain judgments, subsequently placing a lien on your property. Frequently, they fail to provide adequate notification.
With the inclusion of interest and fees annually, certain collectors insist on two to three times the initial debt. We can take immediate action to eliminate or resolve the judgment lien and secure your savings.
Our team has successfully eliminated numerous judgment liens, often without any payment to the debt collector.
What is a Lien?
A lien is a legal claim or right imposed on assets, which are commonly utilized as collateral to fulfill a debt. It can be established by either a creditor or a legal judgment. The purpose of a lien is to ensure the fulfillment of an underlying obligation, such as repaying a loan. In the event that the underlying obligation remains unpaid, the creditor has the authority to seize the asset that is subject to the lien. Various types of liens are employed to secure assets.
What are Common Types of Liens?
Various kinds of liens exist, with financial institutions, governments, and small businesses being able to establish them. Presented below are a few of the most prevalent liens.
Bank Lien: A bank lien is typically established when a person borrows money from a financial institution to buy an asset. For instance, when someone buys a car, the payment is made to the seller using the loaned money from the bank. Consequently, the bank is given a lien on the vehicle. In case the borrower fails to repay the loan, the bank has the right to enforce the lien, take possession of the vehicle, and sell it to settle the debt.
Judgement Lien: A judgment lien is a legal claim on property imposed by the courts, typically as a consequence of a lawsuit. It allows a plaintiff to collect payment in cases where the defendant fails to pay by seizing and selling the defendant's assets.
Mechanic's Lien: A mechanic's lien may be placed on real estate in the event that the property owner neglects to compensate a contractor for services provided. Should the debtor remain delinquent, the contractor has the right to seek legal action and obtain a court ruling against the defaulter, resulting in the auctioning of property or assets to satisfy the lien. Various service providers, such as construction firms and dry cleaners, have the ability to utilize liens as a means to ensure payment.
Real Estate Lien: A real property lien is a lawful claim to take possession and auction off real property if an agreement is not honored. Certain real property liens are imposed automatically, like in the instance of a mortgage lien. When an individual borrows funds from a bank to buy their residence, the bank imposes a lien on the property until the mortgage is settled. Nonetheless, other real property liens arise from failure to repay a debt to a lender or financial organization, making them involuntary and non-consensual liens.
Tax Lien: Tax liens are legal claims placed on a taxpayer's property by tax authorities when the taxpayer fails to pay their owed taxes. These liens are created by law and are commonly used in the field of taxation. For instance, municipalities can utilize liens to recover unpaid property taxes. In the United States, the Internal Revenue Service (IRS) has the power to place a legal claim on a taxpayer's assets, including their home, vehicle, and bank accounts, if the taxpayer becomes delinquent and shows no intention of paying their taxes. This claim is known as a federal tax lien and is notified to creditors through a notice. In some cases, a sheriff's sale may be conducted, where assets are auctioned off to repay the debt. A tax lien can also have an impact on the taxpayer's ability to sell their assets or obtain credit. To release a federal tax lien, the taxpayer must either fully pay the owed taxes or come to a settlement agreement with the IRS. Ignoring a tax lien can result in the IRS seizing the taxpayer's assets. However, the IRS typically resorts to liens as a last option after exhausting other alternatives such as collection efforts, installment repayment plans, and settlements.