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In this case I’d recommend hiring a lawyer. I’m not familiar with the California laws.
In Michigan, I don’t believe you can sue the state. However, due to a lot of abuse of the lien laws here, they may actually work with you in suing the creditor.
You can also sue in small claims court. But for large amounts, you need to be able to prove damages.
Former H&R Block tax preparer and Enrolled Agent
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