2006-12-09 15:39:00 · 3 answers · asked by Margaret G 1 in Business & Finance ➔ Credit
Flyby is mostly right-
A lien establishes a "Claim" against property. The property cannot be disposed of after that point without first settling the lien. However, to sell liened property, one must first "Foreclose" on the lien. At that point the property may be sold and the funds used to pay off the creditor's claim. If there are funds left over, you will get those back. If not, you may still owe the difference to the creditor.
A "Levy", on the other hand is used by the IRS to Seize your property without any further notice or foreclosure process and use the proceeds to pay down a tax debt. I don't believe any other organization or agency has the power to do this in the USA.
2006-12-09 15:58:06 · answer #1 · answered by gfunk 2 · 0⤊ 0⤋
A lien notice is when the legal claim of one person on the property of another to secure debt payment. Like a bank putting a lien on your account until your loan is paid in full. Or a card company putting a lien on your account until paid in full. This is basically "freezing" funds in an account until the company is satisfied with payments.
A levy is where they will collect your taxes until debts are paid in full as well.
2006-12-09 23:58:32 · answer #2 · answered by Renee W 2 · 0⤊ 0⤋
A levy is where a creditor levies against your bank accounts to get any funds that are available. A lein is usually place against real estate or a automobile. Once a lein is place on property they can be sold.
2006-12-09 23:42:08 · answer #3 · answered by Flyby 6 · 1⤊ 0⤋