How to Wipe a Lien Off Your Credit Report
November 23, 2015
Federal Tax Liens can be a major roadblock to getting a mortgage, but they don’t have to be detrimental to your financial aspirations. In most cases, you’ll want to get professional help to wipe your credit clean, but it’s possible to get a lien withdrawn or released on your own. Read on for some helpful information on getting one step closer to achieving your financial goals.
Releases and Withdrawals
Federal Tax Liens prevent an individual from owning or selling any personal property until a debt is paid. There are two effective routes to removing a lien from your credit file. The first is called a release. A lien is released when it becomes null after the debt is fully repaid or cannot be enforced. Despite it sometimes having been “taken care of,” a released lien must remain on your credit by law. If you have paid your debt, your lien has a greater chance of being expunged when you file a “Withdrawal Request” with the IRS. Often, if you can prove that you are in good standing and the lien is preventing personal progress, the IRS will often honor your withdrawal request. If you have not paid the lien in full, it’s possible to file a withdrawal request after three punctual payments. The removal of a lien can give you financial independence and improve your credit score immensely.
Timelines
Sometimes it takes patience to have a lien cleared from your credit report. A lien remains on your record for about ten years, and can be withdrawn up to seven years after full payment. An efficient way to expedite the process is by contacting the IRS to check on the status of your withdrawal report. Once it’s approved, you can ask the IRS to notify major credit reporting firms that your lien has been withdrawn. From there, you can receive a new annual credit report. When push comes to shove, many people choose to hire professionals to take care of their tax liens, as the process can prove to be a bit burdensome and requires a sound understanding of the process.
Where to Start
Nationwide Court Services delivers sound, cost-effective legal and title services that clients know and come to expect. Nationwide’s tax department provides information regarding taxes, arrears, penalties, and redemption periods. Feel free to reach out to us here or visit our website for more information.
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