Liens and the Collection Process

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.

If you believe we filed a lien in error, you may request an Administrative Review. If we determine it was filed in error, we will release the lien.

See Minnesota Statute 270C.63, subdivision 15.

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

• Real property: Land and any buildings or permanent structures, like your house.

• Personal property: Movable property that is not attached to the land.

What is the Process?

Submit your request in writing for:

• Lien subordination
• Partial Lien Release on real property

• Partial lien release on personal property

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:

• There is enough equity in the property to pay off the attached liens
• The subordination or partial lien release will not help resolve the balance due

• The application is missing documents

We must file a lien within five years of the assessment date. If your debt is the result of a Commissioner Filed Return (CFR), that period begins with the date we file the CFR.

A lien expires after 10 years. We can renew it before it expires and continue to take collection actions.

These time limits are part of Minnesota Statute 270C.63, subdivision 9.

• 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.