Reply To: Lien options

Home Forums Member Forum Lien options Reply To: Lien options

Lisel Sutter

I have a client that has a Tax lien on his home for tax years 2010-2013, with the majority being owed from 2010. The debt started at about $40k, but with penalties it is now at about $70K. I am still needing to research the applicable statute dates for 2010, however, it is my belief that as we near the statute lien release date that the IRS will become more aggressive, possibly forcing the sale of the home if the lien amount is not paid. What are the chances of that happening vs. the IRS missing it and releasing the lien? We are trying to plan ahead. A few of the thoughts I have with respect to this case would be exploring: 1) Lien release options and getting taxpayer on a payment plan to ride out the statue (not sure how to do this with a $70k debt so reading Eric’s book). 2) BK – there is a lot of equity in the home, so not having a BK attorney at my disposable at the moment, thinking it will be a repayment BK if this option is exercised. 3) Client cannot refi home because he is 65 and ill, not expected to recover and his wife only makes about $35k per year. 4) Doing OIC but not sure if that works with liens and one who has so much home equity. Client can likely pull $30-$35k out of retirement funds to settle this if that made sense. I know OIC’s are done for much less, but this is little different I think due to lien on real estate issue. Any advice would be most appreciated. Thank you!