What Is A Judgment Lien?

!: What Is A Judgment Lien?

A judgment lien is a court ordered lien that is placed against the home or property when the homeowner simply fails to pay a debt. This doesn't seem like a big deal, but when the homeowner has a judgment lien against his or her home and wants to sell it, the judgment lien has to be paid in full before the home or property can be sold. Judgment liens can be placed against the property for a variety of reasons such as unpaid credit card bills, utility bills, department store bills, landscaping or home improvement bills, and just about any bill that the homeowner has failed to pay in a reasonable amount of time. Any bill that can cause one to end up in court can result in a judgment lien.

A judgment lien is different than a trust, in that the judgment lien holder cannot foreclose on the home or the property as trust holder can. Judgment lien holders can demand payment, but ultimately they must wait for the homeowner to sell the property before they can expect to be paid the money that they are owed according to the judgment. Luckily for the judgment lien holder, the court will typically assign an interest rate to these liens so that the lien holder is compensated for their waiting as the interest will continue to accrue until the debt is paid in full. Because the majority of people will live in their home for quite some time, the interest can make a judgment lien grow, and grow, and grow over the years so that it is quite large. Imagine what a lien of just ,000 would grow to over the years if the interest rate were 15% annually and that would be an even bigger amount if the debt were ,000 or ,000!

Of course, judgment liens require court action. A creditor will take the homeowner to court where the judge will determine if the homeowner does in fact owe the creditor any money. If the court decides that the creditor is owed the money, and the homeowner will not or cannot make payment, the judge will order that a judgment lien be placed against the property. The judgment lien will then be entered into land records offices for the city or county so that the home cannot be sold without repayment of the debt. Once the lien is filed with the land records office, the judgment lien is said to be attached to the property, meaning that it cannot legally be sold without paying off that lien. If the judgment lien is not listed at the land records office, then it means that the debt or lien is not legally attached to the property and does not need to be paid off to sell the home.

A home or property can have numerous liens against it, which may present a problem when the home is to be sold. Fortunately, the law says that liens will be paid off in the order that they were attached to the property, meaning the first lien will be paid first, the second will be paid second, and so on. This is a law that was basically developed for when a home is foreclosed on. If a foreclosed home is auctioned it will first pay off the first lien, then the second, and the third until there is no money left to pay the debts that are still attached or associated with the home. Of course, all trusts against the house, such as mortgages and home equity loans, would be paid off before the judgment liens, so it's not uncommon for these liens to simply go unpaid because there is no money remaining to pay these debts after the trusts are paid. If there is not enough money to pay for all of the judgment liens and trusts on the home or property, they are then wiped out and can no longer be collected on. Of course, the auction will usually attempt to pay for all of these debts, and they are paid for until there is no money. The reason for this is that the new owner will not be able to get any home equity loans or second mortgages with judgment liens already on the home. If there is money left over after everything is paid off, the remaining amount would go to the foreclosed homeowner as all debts are paid.

You can look for judgment liens at the land records office, though you will typically not find them listed with trusts. Investors or homeowners looking to sell their home will have to look into both trusts and judgments, as they are listed in different areas. Investors can often be caught off guard when they realize how much debt is attached to the home, and sellers are often startled at old judgment liens that they had forgotten about and don't want to afford to pay off in order to sell their home. It's a good idea to go over all of this information before one bids on a home or attempts to sell it or put it on the market.

Judgment liens are not something that anyone wants put against their home, but they are common enough. There comes a time for many people when they simply cannot pay a bill, and a judgment lien is ordered. Making a continued effort to pay down the debt is a great idea so that you don't acquire large interest fees in addition to the initial dollar amount of the lien. The homeowner does not have to wait until the home is sold to pay off the lien, instead they can be paid off as soon as possible. The judgment lien is simply put in place so that the home cannot be sold without the debt being paid, and when you look at it from the creditors point of view, this is a great tool to ensure that you'll eventually be paid the amount you are owed in addition to an interest fee that will pay you for waiting.

What Is A Judgment Lien?

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How President Obama's Stimulus Package Will Help You Get More Money in Your Tax Refund

!: How President Obama's Stimulus Package Will Help You Get More Money in Your Tax Refund

TAX RELIEF FOR INDIVIDUALS AND FAMILIES

"Making Work Pay" Tax Credit. This bill cuts taxes for more than 95% of working families in the United States. For 2009 and 2010, it provides a refundable tax credit of up to 0 for working taxpayers and 0 for working families. Taxpayers receive this benefit through a reduction in the amount of income tax that is withheld from their paychecks or by claiming the credit on their tax returns. This means that the average working American will begin to receive more per paycheck beginning this Spring.

Economic Recovery Payment to Recipients of Social Security, SSI, Railroad Retirement and Veterans Disability Compensation Benefits. This provides a one-time payment of 0 to retirees, disabled individuals and SSI recipients receiving benefits from the Social Security Administration, Railroad Retirement beneficiaries and disabled veterans receiving benefits from the Department of Veterans Affairs.

Refundable Credit for Certain Federal and State Pensioners. This provides a one-time refundable credit of 0 in 2009 to certain government retirees who are not eligible for Social Security benefits. This is a one-time credit.

Increase in Earned Income Tax Credit. This temporarily increases the earned income tax credit for working families with three or more children. Under current law, working families with two or more children currently qualify for an earned income credit equal to forty percent (40%) of the family's first ,570 of earned income. This credit is not available to working families with adjusted gross income in excess of ,420 (,540 for married couples filing jointly).

Increase Eligibility for the Refundable Portion of Child Credit. This increases the eligibility for the refundable child tax credit in 2009 and 2010. For 2008, the child tax credit is refundable to the extent of 15 percent of the taxpayer's earned income in excess of ,500. The bill would reduce this floor for 2009 and 2010 to ,000.

"American Opportunity" Education Tax Credit. This provides financial assistance for those seeking a college education. For 2009 and 2010, the bill would provide taxpayers with a new "American Opportunity" tax credit of up to ,500 of the cost of tuition and related expenses paid during the taxable year. Under this new tax credit, taxpayers will receive a tax credit based on one hundred percent (100%) of the first ,000 of tuition and related expenses (including books) paid during the taxable year and twenty-five percent (25%) of the next ,000 of tuition and related expenses paid during the taxable year.

Computers as Qualified Education Expenses in 529 Education Plans. This allows computers and computer technology to qualify as education expenses.

Refundable First-time Home Buyer Credit. Last year, Congress provided taxpayers with a refundable tax credit that was equivalent to an interest-free loan equal to 10 percent of the purchase of a home (up to ,500) by first-time home buyers. The provision applies to homes purchased on or after April 9, 2008 and before July 1, 2009. Taxpayers receiving this tax credit are currently required to repay any amount received under this provision back to the government over 15 years in equal installments, or, if earlier, when the home is sold. The credit is not for taxpayers with adjusted gross income in excess of ,000 (0,000 in the case of a joint return).

Sales

Tax Deduction for Vehicle Purchases. This provides taxpayers with a deduction for state and local sales and excise taxes paid on the purchase of new cars, light truck, recreational vehicles, and motorcycles through 2009. This deduction is limited to taxpayers with an adjusted gross income under 5,000 (0,000 for couples filing jointly).

Temporary Suspension of Taxation of Unemployment Benefits. This temporarily suspends federal income tax on the first ,400 of unemployment benefits per recipient. Any unemployment benefits over ,400 will be subject to federal income tax. This proposal is in effect for taxable year 2009.

Extension of AMT Relief for 2009. The bill would provide more than 26 million families with tax relief in 2009 by extending AMT relief for nonrefundable personal credits and increasing the AMT exemption amount to ,950 for joint filers and ,700 for individuals.

How President Obama's Stimulus Package Will Help You Get More Money in Your Tax Refund

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Can I Pay My Tax Debt in Installments?

!: Can I Pay My Tax Debt in Installments?

In the event you owe some money to the IRS, an installment repayment plan is one solution. Provided that you owe ,000 or less, you should be allowed to implement a 60-month repayment program. If, however, you owe the IRS greater than ,000, typically you must first work out a monthly plan and how much the monthly amount will have to be to satisfy the IRS.

Although you may owe a considerable amount of money, taking part in a monthly system is often comfortable and budget-friendly. In certain cases, an installment plan could be the only choice accessible to you. Even so, you should know there are also certain downsides to an payment plan. Potential problems are sometimes based around the reality that you'll still still accumulate interest fees for the remaining amount of the debt, even as you're making regular payments. Should you put together the interest rates on the applied penalties, the accumulation rate can add 8-10 percent annually. It is conceivable to make payments for a few years and still owe above and beyond the initial dollar amount. You will need legal assistance to come across the most suitable strategy and repayment process that's going to be right for you.

You might not be eligible for an installment plan. To qualify, your tax forms must demonstrate that you have sent in all past due tax returns. If you are self-employed, the IRS must show that you're up to date for your quarterly estimated tax payments. Additionally, for people who have employees, you have to be up-to-date with your pay-roll tax deposits and Form 941 submissions in accordance with IRS documents.

The most suitable choice may be, of course, to pay for any total you owe in full at once, and thereby eliminate interest charges and reduce fees and penalties. Even so, that is not always possible and, as a result, an installment plan just might help you through your present state of affairs.

It is conceivable that a different type of loan or maybe by way of a credit card may help as an alternative, if it offers a less expensive interest rate. In order to achieve the most effective overall results, you have to pay as much as possible toward your debts before getting into into an installment plan.

Can I Pay My Tax Debt in Installments?

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