It’s a common misconception that you can’t discharge tax debts in bankruptcy. It’s possible, but discharge is subject to a good many rules. Income tax debts might be eligible for discharge under Chapter 7 or Chapter 13 of the Bankruptcy Code, depending on how old they are and some other criteria.
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Delinquent property taxes after chapter 7 bankruptcy I filed for chapter 7 bankrupty and was discharged in may 2009. One of my properties included in the bankruptcy is taking forever to foreclose, and i have received a bill in the mail for school taxes that are now past due.
Chapter 11 is a section of the bankruptcy code that permits individuals and businesses to either liquidate or reorganize debt. Distinct from Chapter 7 and Chapter 13 bankruptcy cases, Chapter 11 typically involves greater sums of money regarding the assets and debts of the individual or business.. Who Can File for Chapter 11 Bankruptcy?
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Just four days before the bank seized the property. Most states forgive the taxes, said Annapolis bankruptcy lawyer Tate Russack. States have different statutes of limitation on how long they allow.
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Weekend Picks: Your best bets for fun Jan. 13-15 Mortgage Masters Group Property tax problems for customers of bankrupt lender Also, assume that the debtor’s taxes are due on January 1 the following year and must be paid by January 31 or penalties are imposed. Suppose our debtor files for chapter 7 bankruptcy protection on January 30, 2013.
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When a homeowner fails to pay property taxes, assuming there isn’t an escrow account in place to pay them, the servicer (on behalf of the lender) will send a letter reminding the borrower to stay current. If the taxes remain unpaid, the servicer will pay the bill to prevent a tax sale, and, if you don’t reimburse the servicer, it might foreclose.
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