FTB Tax Lien vs Judgment Lien – Know the Difference
Introduction: Not All Liens Are the Same — And One Comes Without a Judge
If you’re worried about a lien being filed against your home, your business, or your finances, the first question you should ask is:
“What kind of lien is it — a tax lien or a judgment lien?”
Because while both can block financing, show up on title reports, and damage your credit… they are very different in terms of how they’re created, enforced, and resolved.
In this post, we’ll break down the key differences between an FTB tax lien and a California judgment lien, and what Orange County taxpayers can do if either one is filed against them.
🧠 What Is a Lien?
A lien is a legal claim on your property that serves as security for a debt you owe.
If someone has a lien against you, they can:
- Prevent you from selling property without paying the debt
- Interfere with refinancing or borrowing
- File additional collection actions (like levies or garnishments)
✅ What Is an FTB Tax Lien?
A Franchise Tax Board (FTB) lien is a statutory lien filed by the State of California when you owe unpaid income tax, franchise tax, or other FTB-enforced balances.
Key characteristics:
- Created without a court order
- Filed automatically once a tax debt is “legally enforceable”
- Recorded with the county recorder’s office
- Applies to real estate, vehicles, business interests, and more
👉 How Long Does an FTB Tax Lien Stay on Your Record?
✅ What Is a Judgment Lien?
A judgment lien results from a civil court judgment — usually after:
- A lawsuit by a creditor
- A small claims or collections case
- An unresolved business or contract dispute
The lien is created when:
- A court enters a judgment against you
- The creditor records an Abstract of Judgment with the county
🔍 FTB Tax Lien vs Judgment Lien – Side-by-Side Comparison
| Feature | FTB Tax Lien | Judgement Lien |
|---|---|---|
| Origin | Tax debt | Civil lawsuit judgment |
| Court involvement | ❌ No court required | ✅ Court judgment required |
| Issued by | California Franchise Tax Board | Private creditor (via court) |
| Recorded with | County recorder’s office | County recorder’s office |
| Credit impact | Can affect loan approvals and title reports | Same |
| Expiration | Usually 10–20 years unless renewed | 10 years (renewable) |
| Release method | Pay or settle tax debt | Pay or satisfy civil judgment |
🧾 How Does the FTB File a Tax Lien?
The process:
- You fail to pay your tax debt
- The FTB sends multiple notices (NPA, Demand for Payment)
- The balance becomes legally enforceable
- The FTB files a lien in the county where you own property
💡 No judge. No hearing. No trial.
👉 What Happens If You Ignore FTB Notices
⚖️ How Does a Judgment Lien Happen?
- A person or business sues you in civil court
- They win and receive a monetary judgment
- They record the judgment as a lien on your property
This applies to:
- Credit card lawsuits
- Vendor disputes
- Personal loans
- Evictions or rent judgments
🔒 Can Either Lien Result in a Forced Sale?
- Judgment liens may lead to wage garnishments or asset seizure through a court process
- FTB liens do not usually result in forced sales, but can prevent property transfer until paid
🛠️ How to Remove a Lien
✅ Removing an FTB Tax Lien
You must:
- Pay the balance in full or
- Settle the debt through an Offer in Compromise
- Request a Lien Withdrawal (if the lien was filed in error or causes undue harm)
👉 How to Remove an FTB Tax Lien in California
✅ Removing a Judgment Lien
You must:
- Pay the debt in full
- Settle and obtain a Satisfaction of Judgment
- File the release with the county recorder’s office
🧭 How Boulanger CPA Helps Orange County Clients
We help individuals and business owners across Irvine, Anaheim, Santa Ana, Fullerton, and beyond:
- Identify lien type and creditor
- Negotiate settlements with the FTB or private parties
- Request lien releases or withdrawals
- Prepare Offers in Compromise
- Protect assets and credit
📞 Call
657-218-5700
🌐
www.orangecounty.cpa
Frequently Asked Questions
What’s the difference between a tax lien and a judgment lien?
Tax liens come from government agencies (like the FTB), while judgment liens result from civil lawsuits and court orders.
Do tax liens require a court order?
No — the FTB can file a lien without going to court once the debt is enforceable.
Can I remove an FTB lien without paying in full?
Sometimes — through an Offer in Compromise or lien withdrawal if you qualify.
How long do judgment liens last in California?
10 years, but they can be renewed by the creditor.
📣 About the Author
Marc Boulanger, CPA is the founder of Boulanger CPA and Consulting PC, based in Orange County, California.
With over a decade of experience helping individuals and businesses resolve serious IRS and State tax issues, Marc specializes in tax resolution strategies including Offers in Compromise, wage garnishment relief, and back tax compliance.
He is licensed as a Certified Public Accountant in both California and Oklahoma, and has a proven track record of helping clients settle complex tax debts and regain financial stability.
📍 Learn more at www.orangecounty.cpa or call (657) 218-5700.
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