How Tax Liens Affect Your Credit?
When faced with tax debts, though the debt itself won’t affect your credit score, failing to make arrangements to repay your debt in a timely matter can. Tax liens are public records filed with your local government, appearing in the public records section of your credit report.
They’re considered one of the most severe negative credit report entries, damaging your credit score as much as bankruptcies or foreclosures – impairing your credit worthiness. A credit restoration to get back in good grace with creditors is a requirement. However, the Internal Revenue Service (IRS) will not report your tax debt directly to consumer credit bureaus.
Although the IRS no longer shows tax liens on your credit report, tax liens filed against you can still be discovered by your lenders or credit card companies. Your creditors can report your account if you have not paid for three months or more.
How Do I Get a Tax Lien?
You can get tax liens when the IRS files a Notice of Federal Tax Lien against you, meaning the agency has a legal claim against your existing and future properties. Tax liens secure the government’s interest in your assets when you fail to pay your debts.
If you don’t pay or settle your tax debt, the IRS can seize all your real and personal properties.
How Bad Are Tax Liens?
Having tax liens on your account can significantly impact your overall credit score, making it one of the most challenging accounts to dispute if we don’t have proof to support your claims. But working with reliable companies that help fix credit, like The Oasis Firm, can help resolve the issue in no time.
What We Can Do To Help
At The Oasis Firm, we can help you tackle your tax liens just like how we resolve other negative items – look for errors and dispute them. While we do all the legwork, you can negotiate with your lenders on your end. Talk to your lender to help resolve your debts and have an agreement to have the account removed after.
Streamline the process by working with The Oasis Firm, repairing credit, and improving financial standings long-term.
Let our years of experience and passion for education empower your financial freedom