Legal Question in Credit and Debt Law in Illinois

Can a judgment/tax lien from another state be enforced in the debtor's current state of residence? Due to the age of debts - should we even bother attempting repayment to clear up the credit history or wait for the statute of limitations to run out?

We recently pulled my fiance's credit history because he cannot get a job due to his credit, and we found two small claims judgments + one tax lien civil judgment - all from Wisconsin - #1 is eviction + repayment of rent from 9/2006 - no court record exists but appears on credit report; #2 is judgment for money 1/2006 from the bank representing the apartment complex that evicted him - status is closed & docketed 2/2006; #3 is a tax lien from the Dept of Workforce Development of WI for Unempl comp benefit warrant 9/2006 for unemployment compensation he received 1/2006 (my guess is that his former employer did not pay the unemployment compensation). My fiance' lived in WI briefly 2003-2006 and moved back to IL 7/2006 and has lived in IL ever since. My fiance' is unemployed, has zero assets nor real property, currently in court in WI for child support modification & arrears repayment; we're weighing whether or not file Chapter 7 - total owed in judgments/liens/collections/charge-offs = $9,695; current child support arrears $22,243. We understand bankruptcy will not discharge the child support - but can Chapter 7 wipe out judgments/liens of this nature?


Asked on 10/26/10, 6:19 pm

1 Answer from Attorneys

Caroline Palmer Law firm of Caroline Palmer

A state can impose a judgment lien against property that is not in that state. The statute of limitations will NOT get rid of the debt but end the time the creditor has to sue you for it. Government authorities, especially taxing authorities usually have more rights than a commercial creditor so be careful. Chapter 7 will not get rid of tax debt.

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Answered on 11/01/10, 5:47 am


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