Legal Question in Credit and Debt Law in Florida

Some basic Information:

Several years ago I was self employed, and due to some bad decisions and unfortunate circumstances I ended up with some heavy tax debt. I have since set-up a payment plan which I am paying and the IRS has file a Federal Tax Lien against my property (March or April of this year). In January of 2009 I was laid off, and during my unemployment my vehicle was repossessed. It was sold at auction and the remaining balance I still owe. Last night I received a summons from that creditor notifying me that they are suing me for the remaining balance plus costs. The notice states I have 20 days to respond.

Now my questions:

In my response to the summons should I let them know about the tax lien? If the creditor gets a judgement against me, does the tax lien take priority over the judgement in regards to collection action the creditor can take (garnishment of wages, etc)? Are there any suggestion you can make for dealing with this situation?

Thank you,

Oscar


Asked on 9/16/10, 6:05 am

1 Answer from Attorneys
Carolyn Jones Law Office of Carolyn R. Jones

You should let them know you are unemployed it wont keep them from getting a judgment but they may be willing to work out something as for the tax lien the IRS take precedent.

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Answered on 9/22/10, 10:17 am


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