Filing Bankruptcy on an IRS Lien

In case you have taxes or even an Internal Revenue Service lien, you aren’t barred from filing for bankruptcy. Actually, portions of this U.S. Bankruptcy code deal especially with taxation. Should you hold an IRS lien, but there is a good possibility the lien will still be waiting for you if your bankruptcy case is payable. The code is intended to make you pay the lien, if you’re in bankruptcy or not.

Back Taxes and Liens

If you’re planning to file bankruptcy, then it’s important to note the difference between back taxes and exemptions. Back taxation are believed the money you owe to the government in taxes never paid. You do not have to have a lien to get taxes, and such back taxes could be as simple as a shortfall of 100 of a national income tax return three years ago. A lien results when the IRS joins your tax debt into your property, usually your residence, as a way of securing your debt. Additionally, it provides the IRS the legal right to your house, and is sometimes a precursor to selling the home to meet the debt.

The Way Liens Happen

The IRS periodically reviews tax liabilities; if you’ve got one, you’ll receive what is called a Notice and Demand for Payment. This will tell you what you owe. If you either dismiss this letter, or talk to the IRS but cannot completely repay what you owe, in 10 days of receiving the letter, this may trigger a lien. The lien doesn’t start right away. For the lien to be valid, the IRS must file the motion depending on your state’s property laws. For instance, in California, the IRS would record the motion with your county tax clerk.

A Lien’s Validity in Bankruptcy

A federal tax lien is legitimate only when it was registered before you filed for bankruptcy. After a lien is made, the federal bankruptcy code admits this as guaranteed debt, meaning it’s treated just like debt with collateral . Even the lien won’t go away. The IRS’s lien is given a top priority in both Chapter 7 and Chapter 13 proceedings. Even if you go through Chapter 7–that wipes out all of your debts–that the lien does not go away.

Paying Liens in Bankruptcy

Since federal tax exemptions are considered secured debt and receive priority in bankruptcy, it’s likely you will be paying at least some, if not all, of it back. In Chapter 7, this likely means that the sale of property such as your home and other resources to satisfy the lien. In Chapter 13, in which you repay some component of everything you owe your creditors, the bankruptcy trustee must make every endeavor to create a plan which pays your priority claims in full, which may include the lien. When the program is finalized, the IRS is bound into it, even if it does not receive whole payment.

Discharging Liens

While the bankruptcy code is able to help you release back taxes, it may offer little assistance for IRS liens. Liens are intended to get the debtor to repay, regardless of the conditions. The only way to be rid of a lien would be to repay the money owed, whether you’re going through bankruptcy or not. There are means to appeal and get rid of the lien, but these are often as a result of procedural conditions. A lawyer who specializes in bankruptcy or tax law may tell you when you that the IRS violated your rights or its own processes during the lien procedure.

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Real Estate License Qualifications

Residents of California who wish to pursue a career in real estate sales must obtain a license in the country before they could work with clients to purchase or sell property. As of 2010, the Bureau of Labor Statistics reports that the number of real estate agents and brokers will increase by around 14 percent between 2008 and 2018. You can be part of the business 's growth by visiting California's Department of Real Estate to begin the licensing procedure.

Meet Legal Age Requirement

The state of California has an age condition aspiring real estate agents must fulfill before they could take the written real estate exam. All individuals who plan on applying for a license to become a real estate agent in the state of California must be at least 18 years old.

Proof of Residency

Real estate license applicants must be legal residents of the United States, but not necessarily residents of the state of California. Applicants that are residents of another country are required to fill out an out-of-state program. California's Department of Real Estate site says that out-of-state applicants cannot obtain a waiver excusing them from the licensing conditions.

Pass Background Review

Applicants must disclose any criminal convictions or pending criminal cases when applying for a license. It'so essential that applicants provide accurate facts in their pasts, or they may be denied a license. Every candidate 's criminal convictions will be assessed on a person-by-person foundation.

Obtain Education and Coaching

Submit transcripts that signify that you satisfactorily completed coursework in real estate principles, real estate practice and another real estate related class such as business law, property management or real estate appraisal. For a full listing of approved coursework, visit the California Department of Real Estate's website (see Resources). If you’re licensed to practice law in California, or another state, or have a J.D. Or LL.B degree, you may have the ability to waive these course requirements.

Submit Fee and Application

If you’re old, fulfill the residency requirements and also have the essential education requirements, submit an application to become a sales agent in California. Applications are available online in California's Department of Real Estate website. As of 2010, applicants may file for their test and license in the exact same period and pay a charge of $305, or applicants can but pay $60 to their own test.

Written Examination

Applicants that are at least 18 years old, together with the essential education requirements, can apply to take the written real estate examination. Applicants that pass the test and the background inspection have one year to apply for their real estate license in the state of California.

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