How to Negotiate a Lien
- 1). Set up a payment plan if you have a federal tax obligation. Failure to pay federal income tax is one of the most serious debt delinquency issues, as you may face liens on personal assets, or even jail time. The IRS is usually amenable to working out a payment plan for back taxes.
- 2). Avoid a homeowners' lien by paying off homeowners association (HOA) fees. Consult the head of your HOA group and resolve the debt.
- 3). Pay off credit card debts before the company takes you to court and obtains a judgment against you. Defaulted bank or car loans and credit card debt are all ways to attract personal property liens if these obligations are not paid. Try to either settle the debt for a lesser amount or get set up on a monthly payment plan you can handle.
- 4). File for bankruptcy if there is no feasible way to pay off your debts. There are several different types of bankruptcy, including Chapters 7, 11 and 13, depending on the type of debt and how much income you earn. This is a last resort, as a bankruptcy affects your credit history for up to 10 years.
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