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New Member
roseann0617
Posts: 10
Registered: ‎11-28-2012

released lien vs satisfied lien? Need help understanding.

I currently have a state tax lien from Delaware that I paid in full back in 2009. The 3 credit agencies have it marked as released. I did receive a letter from DE tax dept. saying it was satisfied in full. Should I be trying to get the crediting agencies to change my status from released to satisfied or does it really matter at this point?
I would LOVE to know if there are measures I can take to get this completely wiped off my report instead of waiting 7 years. All this for $122 dollars owed.......had I known better I would have paid this one way or another back then.

Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007

Re: released lien vs satisfied lien? Need help understanding.

In the eyes of lenders and FICO, it doesn't matter if it is released or satisfied. I would take steps to see about getting it removed. I can't speak to state liens, and YMMV on state of course, but federal liens are fairly easy to get removed once paid. Definitely search around for others in DE.

New Member
roseann0617
Posts: 10
Registered: ‎11-28-2012

Re: released lien vs satisfied lien? Need help understanding.

Thanks for your reply. I've been searching and will continue to search. I even called the Delaware Division of Revenue today. I asked if they had any steps I could take to have this removed ffrom my credit report and they said no I would have to wait the 7 years. I just hate that it sits on my report now after all these years. When I recently tried to buy a car this was the FIRST thing they mentioned..."Oh you have a lien". When I tried to explain that it was paid 4 years ago and it was only for $122 dollars it didn't really seem to matter at that point.

 

 

Mega Contributor
RobertEG
Posts: 17,456
Registered: ‎03-19-2007

Re: released lien vs satisfied lien? Need help understanding.

+1

As with any type of delinquent indebetness, be it a tax lien, monthly delinquency, charge-off, collection, etc., the reporting is of the occurence of the delinquency at that point in time.  Subsequent status of payment or non-payment of the debt does not alter the accuracy of the reporting of its prior status, and is thus not a basis for deletion of the prior reporting.

 

Do you know the name of the party who reported the lien to the CRA?  Being a public record, that is often difficult to determine, but if you can identify and contact them, they always have the ability to delete their own prior reporting.

 

 

New Member
roseann0617
Posts: 10
Registered: ‎11-28-2012

Re: released lien vs satisfied lien? Need help understanding.

yes I actually have a copy of the cancelled check and I paid that money to the Penn Credit Corp. That is all I know about them.....is what's on my cancelled check. Do you think it would be worth a shot to try and contact them directly?

New Member
roseann0617
Posts: 10
Registered: ‎11-28-2012

Re: released lien vs satisfied lien? Need help understanding.

oh wait! I just went back and re-read your posting....I am not sure if Penn Credit Corp was WHO reported it...all I know is that is where I paid this debt off.

Could they be one in the same?

Frequent Contributor
brother7
Posts: 376
Registered: ‎02-06-2009

Re: released lien vs satisfied lien? Need help understanding.


llecs wrote:

federal liens are fairly easy to get removed once paid.


Is this true? I thought liens stay on a CR for 7 years after being satisfied/released/paid.

If it's possible to get it removed before the 7 years, how should one word the dispute?


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Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007

Re: released lien vs satisfied lien? Need help understanding.

I never went through the process, so bumping for others, but the IRS recently changed their rules were you can get a tax lien off early. I don't know if there's a paperwork request or what, but definitely search in here. It doesn't involve the CRAs or a dispute. It's a request directed to the IRS.

New Member
roseann0617
Posts: 10
Registered: ‎11-28-2012

Re: released lien vs satisfied lien? Need help understanding.

From everything I have read recently....it is MUCH easier to get a federal tax lien removed than a state tax lien. There are actually forms for those with a federal tax lien that you can fill out and submit to have removed.

 

Still no luck on the state level.

 

Frequent Contributor
kimmiller112
Posts: 465
Registered: ‎04-09-2012

Re: released lien vs satisfied lien? Need help understanding.


brother7 wrote:

llecs wrote:

federal liens are fairly easy to get removed once paid.


Is this true? I thought liens stay on a CR for 7 years after being satisfied/released/paid.

If it's possible to get it removed before the 7 years, how should one word the dispute?


 

Yes, you can have a paid federal lien removed very easily but it has to be done through the IRS.  Do a web search for withdrawing a federal tax lien.  The IRS has a form that needs to be completed and mailed - you will also have do to a web search on where it needs to go as the addresses are listed separately and depend on where you live.  You can include a list of the mailing addresses from all three CRAs and they will send the notice of withdrawal directly to them as well as a copy to you.  The processing time through the IRS is about 45 days and all of my CRAs were updated about a week later.

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