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Hi, guys,
I had a federal tax lien for $20K filed against me in 2010. It was paid in full and released in 2011 and I applied to the IRS to have it removed. I've been told the request has been approved. Yay! How much should I expect my score to rise, if at all? I have a thin credit file -- a month-old credit card, two-year old car loan, and a paid civil judgment from 2010. My scores hover now in the 640 range. Any ideas how the lien removal will affect my score? Thanks!
Being that new I would think it would be fairly sigificant but YMMV.
What other major derogatories are on your CR, if any?
ETA: I guess I should have read your post more thoroughly.
With a thin file I still think you will see a good bump.
Have you looked into getting the civil judgment vacated, if your state allows for it?
Hi, I'm in NY and they allow for that only under very limited circumstances, from what I understand. I tried reaching out to the OC to ask for a goodwill removal, but no dice on that. I'm planning to look at the physical document at the courthouse to see if I was served properly (I definitely don't remember being served about this lawsuit at all -- at least, not by a process server.) Thanks for your help.
I had a paid state lien removed last month and my score went up 22 pts.
It's hard to say with the judgement which is another substantial derogatory.
For example, I recently had a silly tax lien levied against me (fortunately it was federal and therefore easy to clear otherwise I'd be really angry as I paid it before the lien was obtained) and only dropped 5 points, /yawn.
If I were able to get all of my tax liens off (3 total now, one obsolete and falling off soon, and one maybe I'll get lucky with a GW letter otherwise stuck with for another 4ish years) I'd guess I'd increase by roughly 40-50 points on my Beacon 5.0 score (a lot less on '08 I suspect, interested to see how Wally reacts to the new lien).
I'll be interested to hear what your score does do after it's removed though, would give some idea if judgement = tax lien from a penalty perspective or if they wind up being substantially different.
IIRC, judgements paid within one year can only remain on a NY credit report 5 years.
This may or may not help http://codes.lp.findlaw.com/nycode/GBS/25/380-j
Just wanted to update you guys. I received the IRS lien withdrawal certificate. Happy happy! And the civil judgement was removed as well. I'm so happy. I've just sent the lien deletion request to the CRAs. Once the lien has been removed my credit reports will be clean for the first in a long time. I'll check my scores then and let you know how much the lien + judgement deletion affected them, if at all. Thanks guys!
@seetheworld1 wrote:Just wanted to update you guys. I received the IRS lien withdrawal certificate. Happy happy! And the civil judgement was removed as well. I'm so happy. I've just sent the lien deletion request to the CRAs. Once the lien has been removed my credit reports will be clean for the first in a long time. I'll check my scores then and let you know how much the lien + judgement deletion affected them, if at all. Thanks guys!
Congrats
UPDATE: With my tax lien and my judgement off my report, my EX FICO shot up from 593 (in November) to 738!! Wooo hooo!!