Sometimes having a lien and no job can go hand-in-hand. A creditor can only get a lien against you after filing a lawsuit, something that usually doesn't happen until you are months behind on your payments. If you have no job, this could easily happen as you divert your resources to other expenses. While a lien may not directly affect you while you have no job, you will usually have to pay it off eventually.
Liens
If you owe a creditor money, that creditor cannot simply decide to file a lien against you. A creditor must win a judgment in court to get a lien. The process of going to court, winning a lawsuit and getting a judgment against you can be costly and time-consuming for your creditor. However, a lien is also a good way for a creditor to improve the chance of repayment. A lien attaches to your property, meaning you cannot sell your property and receive the proceeds until you pay off the lien. If you can pay off the lien, it will vanish, but if you have no job, that may be difficult to do. What a lien does not empower your creditor to do, however, is to take money out of your bank account. A lien is only satisfied when the underlying property is liquidated.
Levies
In some cases, a creditor can go one step beyond a lien and get a levy against your assets. This can be difficult to do, as each state has its own laws regarding the rights of creditors regarding the seizing of assets. However, if your creditor manages to get court approval to levy your assets, it has the right to take money from your bank accounts or seize other property. If your creditor is the IRS, it can simply choose to levy your property, rather than going through the courts. If you have no job, you have little defense against a levy, since it can only be satisfied through payment. You may lose assets if you have a levy against you and no job.
Wage Garnishment
Some creditors opt to enforce their judgments by filing for wage garnishment, rather than a lien or levy. In most states, a creditor can garnish up to 25 percent of your disposable wages, subject to court approval. However, if you have no job, it would be fruitless for a creditor to pursue wage garnishment, particularly if it already has a lien against your property.
Bankruptcy and Liens
For many debtors, bankruptcy is a way out from debt or judgments. If you have no job, you can often qualify for bankruptcy. With a properly prepared bankruptcy petition, you might be able to get a discharge of your debt in as few as three months. However, if you have a lien filed against you, bankruptcy might not be the answer. With few exceptions, a bankruptcy discharge will not invalidate the lien against you. While you could quite possibly dismiss your obligation to pay the debt that forced the lien, the law states that the lien remains against your property and it must still be satisfied when you sell your property.
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