Tips on Removing My Father's Tax Liens and Medical Collections

[chalupaman]

Someone told me that it would be best to ask this question here but my father is nearly done cleaning up his credit reports. The only major thing that remains on all his bureaus are the two medical collections and the two released tax liens which are really holding his FICO scores back. The two late payments he had was on a card that's been closed since 2009. I especially want to know how he can at least get the tax liens removed and then he can probably take care of the medical collections that are on his report. It would be great if someone with experience on this matter can chime in.

Another question I have is that his Capital One card isn't reporting on TU or EQ and is only showing up on EX and I wanna know if he needs to call CapOne or TU to have that fixed. He's had it for 7 months.

[gdale6]

For medical debt:

1. Call the OC and ask that they recall the collection in exchange for full payment
2. Send the reporting CA a PFD offer
3. Google the HIPAA Process and contact its creator for help

On the tax liens if they are paid he will need to look into getting them withdrawn by the entity that issued them, if its IRS and under 25K file form 12277. A lien withdrawal is the same as a dismissal as if they never even happened and they are then deleted from the CR.

On the Cap-1 call and ask that they do an update to those 2 CRAs if it still doesnt show then call the CRAs and let them know, they will have to file a report with their IT team to see what may be blocking their reporting.

[chalupaman]

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@gdale6 wrote:

For medical debt:

1. Call the OC and ask that they recall the collection in exchange for full payment
2. Send the reporting CA a PFD offer
3. Google the HIPAA Process and contact its creator for help

On the tax liens if they are paid he will need to look into getting them withdrawn by the entity that issued them, if its IRS and under 25K file form 12277. A lien withdrawal is the same as a dismissal as if they never even happened and they are then deleted from the CR.

On the Cap-1 call and ask that they do an update to those 2 CRAs if it still doesnt show then call the CRAs and let them know, they will have to file a report with their IT team to see what may be blocking their reporting.

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Do you know if "state tax lien released" means that the tax liens have been paid. I assumed that would be the case but I'm not sure. If that's the case, then I'll tell him that he can get them off early. Those were under $25k too but I don't think they were IRS ones.

I'll also tell him about the medical collection removal process.

[Anonymous]

Generally speaking, released = paid. But for liens, being released does not equate to removal. The CRAs continue to pull in the public record for 7 years after they were paid.

How long ago did your father pay them?

Your best bet is to go back to the tax authority that issued the lien to see if there are any options for withdrawing the lien from public record (which, if it's no longer on record, it can't be pulled in by the CRA, and for all intents and purposes results in a deletion.) Going to the CRA in the case of a public record won't do much - they are only reporting the public record. Change the public record, change the report. The lien issuer might not do anything, they might give you paperwork to file with the court to remove the public record, they might take care of it all if you just ask.

Is there a particular reason that your dad is looking to have this removed? Like an upcoming mortgage pull or similar? Don't underestimate the power of paying his case - if you hit on a sympathetic person with a good reason, they might be able to make a concession.

Good luck!

[chalupaman]

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@Anonymous wrote:

Generally speaking, released = paid. But for liens, being released does not equate to removal. The CRAs continue to pull in the public record for 7 years after they were paid.

How long ago did your father pay them?

Your best bet is to go back to the tax authority that issued the lien to see if there are any options for withdrawing the lien from public record (which, if it's no longer on record, it can't be pulled in by the CRA, and for all intents and purposes results in a deletion.) Going to the CRA in the case of a public record won't do much - they are only reporting the public record. Change the public record, change the report. The lien issuer might not do anything, they might give you paperwork to file with the court to remove the public record, they might take care of it all if you just ask.

Is there a particular reason that your dad is looking to have this removed? Like an upcoming mortgage pull or similar? Don't underestimate the power of paying his case - if you hit on a sympathetic person with a good reason, they might be able to make a concession.

Good luck!

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He's just trying to get his reports as clean as he can possibly get them. He paid off the tax liens relatively recently too and has gotten a lot of other collections removed completely from his reports.

[gdale6]

A released lien doesnt always equate to a paid lien, a lien will be automatically released when the relevant SOL that applies to its effective time period of enforcability is exceeded. In this case and I know it doesnt apply here but for future reference the time period it would remain on file is 10 years from the date it was issued and not 7 years from the release date for actual paid ones.

[Anonymous]

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@gdale6 wrote:

A released lien doesnt always equate to a paid lien, a lien will be automatically released when the relevant SOL that applies to its effective time period of enforcability is exceeded. In this case and I know it doesnt apply here but for future reference the time period it would remain on file is 10 years from the date it was issued and not 7 years from the release date for actual paid ones.

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This sums up the information I most often see repeated with regard to tax lien reporting timeframes.

However, this focuses on federal liens, of which there is a plethora of info. And doesn't take into account the ability to now file for a withdrawal of paid liens. So, a lot of the info I'm referring to may well be out of date, but it's the only info I've been able to find.

http://collectionagencydebt.blogspot.com/2012/11/how-long-do-paid-and-unpaid-tax-liens.html 

[chalupaman]

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@Anonymous wrote:

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@gdale6 wrote:

A released lien doesnt always equate to a paid lien, a lien will be automatically released when the relevant SOL that applies to its effective time period of enforcability is exceeded. In this case and I know it doesnt apply here but for future reference the time period it would remain on file is 10 years from the date it was issued and not 7 years from the release date for actual paid ones.

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This sums up the information I most often see repeated with regard to tax lien reporting timeframes.

However, this focuses on federal liens, of which there is a plethora of info. And doesn't take into account the ability to now file for a withdrawal of paid liens. So, a lot of the info I'm referring to may well be out of date, but it's the only info I've been able to find.

http://collectionagencydebt.blogspot.com/2012/11/how-long-do-paid-and-unpaid-tax-liens.html 

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For some reason when I click on that link, I don't really see the blog post. It says it doesn't exist.

Thanks for the great advice guys.