Removing a State Tax Lien from Your Credit
July 8, 2013
State tax liens can be very difficult to get removed from your credit report. This is a specific type of debt that isn’t even reported to the credit bureaus, but still ends up on your report. It’s possible to get these removed, but it’s certainly not easy. Here’s how it usually works.
You may not even know you own back taxes on a property, on income or something else with the state, but they empty your bank account and you find out. Waking up to the surprise, you scramble to figure out how to pay your bills and deal with all the other financial things for the next few months. On top of it, you might still owe them money, depending on how much they took from your account and how much you owe.
After finding out you owe this debt, you might be able to call and pay it immediately, which you should. However, this won’t keep it from showing up on your credit because it’s public record. The state won’t report the lien to your credit, but the bureaus find them because they are public record. This makes it very difficult to convince them to remove the lien, which causes issues with your credit score.
Getting the Lien Removed
The only way you can successful get the lien remove is to deal with the state. They must withdraw the lien all together for it to be removed. Of course, they won’t do this until you pay them in full, so if you cannot pay them, don’t even bother asking. However, if you’ve paid the balance in full or you can, contacting the state might lead to successful removal.
Credit bureaus don’t maintain withdrawn liens, so if you need to get one removed, you need to contact the state and ask them to withdraw the lien. This isn’t a guarantee it will happen and don’t expect this to happen overnight, but it’s the only option for removing state tax liens.