tax lien

[Anonymous]

Anybody know what a tax lien does to your FICO?

[llecs]

Harms it. Damage depends on the dates on the lien, how long it has been reporting, and its relationship to other baddies on your report.

[Junejer]

Hello snarkyboy, and welcome to the forums. Please read Credit Scoring 101, if you haven't already.

A tax lien is a PR and will destroy your score like none other. Avoid it at all costs.

[haulingthescoreup]

And it reports for-absolutely-ever. AKA 15 years.

If you haven't got any other public records (BK's, etc.) or collections or serious lates, it also places you in one of the serious derogatory score buckets (credit profiles), and your top scores will be limited until it falls off your record.

[brother7]

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@haulingthescoreup wrote:
it also places you in one of the serious derogatory score buckets (credit profiles), and your top scores will be limited until it falls off your record.

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Is this true, even if it's dismissed/discharged/satisfied/released?

[Junejer]

Yes. Its very presence on the CR is the kiss of death.

[Anonymous]

If the tax lien is impossible to pay, is it better to just claim bankruptcy and start over or just let the lien age?

[llecs]

Declaring BK would be worse (to your score). Then you'd have a lien and a BK. Per declaring BK, you may want to check out the BK Board to see if tax liens can be included.

[medicgrrl]

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@Anonymous wrote:
If the tax lien is impossible to pay, is it better to just claim bankruptcy and start over or just let the lien age?

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If the lien is truly impossible to pay then go to the IRS website and search "offer in compromise"  Fill out the form as directed and see if the IRS will lower your amount owed.

[Anonymous]

Its not an IRS lein, it's from the State of Texas for back fuel taxes for the business. I could probably try to compromise with them too unless somebody knows something different.