A lien is a right given to a third party, usually a medical facility or health insurer, to be reimbursed for healthcare or other benefits obtained through a settlement from the liable party. This right is established by state law, local regulations, or your insurance agreement. In certain instances, your attorney may negotiate to reduce these liens, although it is not guaranteed.
Liens grant a government agency a legal right to a taxpayer’s assets as collateral or payment for unpaid taxes. The process of filing an active tax lien follows a similar timeline to that of a levy. The total liability must be calculated and assessed, followed by sending a Notice and Demand for Payment, which must be ignored by the taxpayer for at least 10 days after receiving notification. The government agency, in this case, may choose to file the lien at any time after that ? there are no specific requirements or deadlines for filing. However, if there is a perceived risk of asset flight or if the taxpayer is taking actions such as declaring bankruptcy that may hinder collection, the agency may expedite the filing process.
When a lien is placed on real estate, it usually takes precedence over other creditors. It is typically filed in the county where the property is situated. The government agency has broad discretion to use the lien to expedite collection efforts. For instance, if releasing or subordinating the lien would assist a homeowner in refinancing or selling the property to settle the debt, the agency has the authority to do so. In certain cases, the agency may require a bond to ensure payment, but the main point is that there are possibilities for the taxpayer to navigate around a lien if desired or if they possess substantial equity.
Leave a Reply