Tax Lien Lawyers in East Haven

In East Haven, Connecticut, a "lien" is a security interest placed on a piece of property, typically land or a house, to secure the payment of a debt. It usually gives a creditor the right to take ownership of any equity that exists in the property, to secure the payment of the debt. If the owner sells the property, the creditor may also be entitled to the proceeds of the sale, up to the amount owed. It can also give the holder of the lien a higher priority status, giving them an advantage over competing creditors, if the debtor files bankruptcy.

A "tax lien," then, is a lien held by the government to collect a tax-related debt from a private entity, such as a person or corporation in East Haven, Connecticut.

However, like any other debt-collection method, a tax lien is worthless if the debtor has no substantial property on which a lien can be imposed. To get around this limitation, most tax liens in East Haven, Connecticut apply to after-acquired property (property obtained after the lien was created). Most other liens only apply to particular pieces of property, or property that the debtor owned at the time the lien went into effect.

Tax Lien Procedure in East Haven, Connecticut

Imposing a tax lien in East Haven, Connecticut is normally an uncomplicated process. Usually, the tax authorities simply have to make a determination that the taxpayer is delinquent in their taxes, and that imposing and enforcing a tax lien will actually be worth the effort.

They will then mail a document called a "notice and demand," which lets the taxpayer know that they owe money on their taxes, and that they have a given period of time (typically 10 days) to pay what they owe.

If that time period expires, and the debtor still hasn't paid, the Connecticut tax lien will go into effect automatically, with no further action required.

However, if the federal government does not seek to enforce a tax lien in East Haven, Connecticut within 10 years of imposing it, federal law dictates that the lien automatically expires. This is effectively a statute of limitations on a tax lien, meant to encourage the federal government to collect its taxes in a reasonable period of time, and ensure that property is not encumbered by a lien forever.

How Can a East Haven, Connecticut Tax Lien Lawyer Help?

If the federal government, or the government of Connecticut informs you that they intend to place a tax lien on your property, you will likely face some pretty intricate and daunting legal issues.

Accordingly, it's important that you contact a tax attorney in East Haven, Connecticut to ensure that whatever legal rights you have in this situation are protected. Your attorney will also be able to advise you on how to best deal with the situation.