Judgment Creditor vs. Federal Tax Lien

[freedomfrombs]

What is the name of your state (only U.S. law)? NC

Hi Everyone! I just need some advice from anyone that would like to provide.

I currently have a $20,000 Federal Tax Lien against me and a $12,000 State Tax Lien that will be filed within the next couple of months.

My dilemma is with a persistent collection agency/junk debt buyer and their attorney, who is attempting to obtain a judgment against me for some credit cards that I defaulted on in the past. My questions are: Would they be able to secure a judgment against me even though I have priority debt owed to the IRS? And if so, would they potentially be able to secure a bank account levy order (payroll garnishments are not allowed in NC or so they tell me) against me even though my assets are secured by the IRS under the Federal Tax Lien? Would I be able to stop them dead in their tracks by presenting the Certificate of Federal Tax Lien to the courts during my upcoming Summary Judgment hearing? I have a feeling that they are only attempting to obtain the judgment before the 3yr SOL expires (January 2013) and have no intention of actually levying my bank accounts...

Thank you in advance for any light that you can shed on this matter!

~ R.C.W.

 

[justalayman]

My questions are: Would they be able to secure a judgment against me even though I have priority debt owed to the IRS?

sure they could. Why would you think otherwise?

And if so, would they potentially be able to secure a bank account levy order (payroll garnishments are not allowed in NC or so they tell me) against me even though my assets are secured by the IRS under the Federal Tax Lien?

If the feds or state don't take it first, then they get to grab it.

Would I be able to stop them dead in their tracks by presenting the Certificate of Federal Tax Lien to the courts during my upcoming Summary Judgment hearing?

Not a chance. They can get a judgment regardless of your financial situation, your indebtedness, or anything else, as long as they prove the debt. The only issue is collecting on the judgment. They have 10 years to do that though.

 

[sandyclaus]

What is the name of your state (only U.S. law)? NC

Hi Everyone! I just need some advice from anyone that would like to provide.

I currently have a $20,000 Federal Tax Lien against me and a $12,000 State Tax Lien that will be filed within the next couple of months.

My dilemma is with a persistent collection agency/junk debt buyer and their attorney, who is attempting to obtain a judgment against me for some credit cards that I defaulted on in the past. My questions are: Would they be able to secure a judgment against me even though I have priority debt owed to the IRS? And if so, would they potentially be able to secure a bank account levy order (payroll garnishments are not allowed in NC or so they tell me) against me even though my assets are secured by the IRS under the Federal Tax Lien? Would I be able to stop them dead in their tracks by presenting the Certificate of Federal Tax Lien to the courts during my upcoming Summary Judgment hearing? I have a feeling that they are only attempting to obtain the judgment before the 3yr SOL expires (January 2013) and have no intention of actually levying my bank accounts...

Thank you in advance for any light that you can shed on this matter!

~ R.C.W.

That would be a YES. One can have several liens filed against them. Their only challenge would be in collecting against both liens, and that's pretty much a matter of the maximum amount one can have levied from a bank account at any given time.

Once the judgment is entered against you, whomever files the bank levy first will get first dibs on the funds in your bank account. Then consider that NC judgments are good for 10 years, so they can move forward with a levy to collect the debt at any time during that 10 year period, and even longer if the creditor elects to renew the judgment for another 10 years.

 

[freedomfrombs]

sure they could. Why would you think otherwise?



If the feds or state don't take it first, then they get to grab it.


Not a chance. They can get a judgment regardless of your financial situation, your indebtedness, or anything else, as long as they prove the debt. The only issue is collecting on the judgment. They have 10 years to do that though.

Thanks for the quick response and very helpful information!

 

[freedomfrombs]

That would be a YES. One can have several liens filed against them. Their only challenge would be in collecting against both liens, and that's pretty much a matter of the maximum amount one can have levied from a bank account at any given time.

Once the judgment is entered against you, whomever files the bank levy first will get first dibs on the funds in your bank account. Then consider that NC judgments are good for 10 years, so they can move forward with a levy to collect the debt at any time during that 10 year period, and even longer if the creditor elects to renew the judgment for another 10 years.

OK.. I've got you! I appreciate that clarification!