What if a person owes money to several creditors or several state agencies?
If a person owes money to several creditors or several state agencies, then about that law is not always clear on whether back taxes are the first things a person must pay. Something called “perfecting” a tax lien is done by the organizations like the IRS , in order to establish priority over other creditors, though this doesn’t always work. By filing a Notice of Federal Tax Lien (NFTL) with local or state governments perfects the lien. In perfecting a lien the IRS has a strong interest so they can be among the first paid through seizure or sale of property.
Related Questions
- If criminal non-support charges are brought against the person who owes me money, can the Child Support Division still enforce my case civilly or administratively?
- CAN THE OFFICE OF STATE GUARDIAN BE APPOINTED GUARDIAN TO HANDLE A PERSONS MONEY OR FINANCIAL AFFAIRS?
- When can money be wired for State and Custodial agencies?
