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Liens and the Collection Process
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A lien is a legal claim filed with the Office of the Minnesota Secretary of State or county recorder. We may file a lien at any time when an individual or business owes a debt to the state.
A lien allows us to take real property (land and any permanent buildings, fixtures, or improvements on that land) or personal property (movable property, such as vehicles, furniture, boats, and collectibles) owned by an individual or business in Minnesota to pay your debt.
Liens extend the time we can take action to resolve your debt to 10 years. For more information, see Statute of limitations. Once a lien is recorded, it becomes public information.
Minnesota law requires us to add a $30 fee to the debt of the taxpayer for filing and releasing each lien. (See Minnesota Statutes, section 270C.63 and section 16D.08).
We will release the lien when the debts on the lien are paid in full with secured funds. If you pay any other way, we will release the lien 30 days from the day we receive your payment.
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We cannot file a lien on your property when you are in bankruptcy. A bankruptcy extends the time in which we can file a lien for debts that are not discharged. It does not extend the time to renew liens that were filed before the bankruptcy.
No. However, anyone can search public records to locate recorded liens, including credit bureaus.
You may request a lien subordination or partial lien release if it will help resolve the balance due. If approved, you are still liable for your debts and the collection process will continue.
Lien Subordination
Primarily for mortgage refinancing, a lien subordination puts a new mortgage or UCC1 document at a higher priority than our lien. Our lien stays attached to the property.
Partial Lien Release
If you want to sell real or personal property and proceeds of the sale will not be enough to pay off your lien, you may ask for a partial lien release. A partial release detaches our lien from your property, but it stays attached to you until the debt is paid in full.
Definitions
What is the Process?
Submit your request in writing for:
We will contact you within two weeks of receiving your application with more information.
We may continue to take collection actions while we consider your request.
Our Determination
If we accept your request, we'll release or subordinate our lien after we receive the payment amount listed on the commitment letter and closing documents.
If we deny your request, we'll send you a denial letter. Our liens remain attached to your property until the balance is paid in full. We may deny your request if:
- A lien attaches to all proceeds if you sell your property.
- If you die, the property becomes part of your estate. A lien remains attached to the property.
- If there are multiple owners, the lien only affects the person whose name is on the lien.
- If you own as a joint tenant, and the other joint tenant dies, the lien on the deceased owner ends.
- If you own as tenants in common, and the other tenant dies, their share of the property goes to the heirs. The lien remains attached to the property.
We transcribe (copy) a lien between one county and another county, or between a county and the Office of the Minnesota Secretary of State (OSS) if:
- You move to a new county
- We find real property in another county
A transcription may be filed within ten years of the original filing date. It does not extend the statute of limitations.