Are you behind on paying your home or car loan? Did a home contractor or an ex-spouse claim you did not pay your repair or child support bill? Does the IRS claim you haven’t paid your taxes? For these and many other reasons, banks or courts can place a lien on your property, meaning that, if you don’t fight back, the bank, court, or other claimant can seize your property and sell it as collateral for a claim against you. This may be scary, but we at DoNotPay can help you leverage both the law and the interests of the person claiming a lien against you to avoid having your property seized!
A lien is a claim against some or all of your property because of a debt that the claimant alleges that you did not pay. The purpose of the lien is to allow the claimant to take whatever property the court deems to be appropriate collateral and to sell it in order to recoup the unpaid claim.
Why Might Someone File a Lien on Your Property?
Liens can be filed for many different reasons, but there are a few very common cases that we’ll cover here:
You’re Behind on Your Loan Payments (Mortgage, Car, etc.)
If you’re behind on your loan payments, the bank wants to recoup its costs, and if you can’t or won’t make timely payments, that may mean repossessing the car and selling it to someone who will.
You Owe Taxes to the IRS (or at Least the IRS Says You Do)
If you owe taxes, the IRS may, as a last resort, place a lien on your property to get the taxes you owe. Unfortunately, this kind of lien can’t even be discharged in bankruptcy, and occasionally the IRS puts a lien on your property by mistake.
You Owe Child Support or Alimony
If you’re behind on your child support or alimony payments, a court may put a lien on your property to make sure that these payments are made. Like a tax lien, this kind of lien isn’t dischargeable if you file bankruptcy.
You Owe Money to a Contractor
If you had work done at your house or on your car and didn't pay the bill, your repairman or contractor may place a mechanic’s lien on whatever property was repaired in order to get paid.