Can I file bankruptcy, if I have a state tax lien to repay unemployment on my credit for the state and which one, chapter 7 or 13?

Repayment of unemployment compensation that you received as a result of an error by the state or you in handling your unemployment claim is discharged in bankruptcy. However, if you received the unemployment compensation due to your fraud, it is not dischargeable. For example, if you were unemployed and applied for UC and your payment should have been $250 a week but the Bureau made an error so you were paid $300 a week - that's dischargeable. On the other hand, if you applied for UC but were working doing landscaping paid under the table and got caught - that is not dischargeable.

You may be eligible for either a chapter 7 or chapter 13, depending on several factors. It requires more of an analysis then can be provided in a response on a website.

Chapter 7.

People with tax liens file bankruptcy all the time. That is not to say that the government will not get paid, as in most situations, bankruptcy does not change a lien, which is a way of connecting a debt to your ownership in property. And BTW, when I say property, I do not just mean real estate. Money in the bank, a life insurance policy, a retirement account, and any other asset is considered to be tied up by a tax lien.

No one can answer that question except a lawyer with whom you have discussed all the relevant facts and there are many. I strongly suggest you retain an experienced bankruptcy lawyer in your locality.

You would have to use chapter 13 to repay that one, because it cannot be discharged in bankruptcy.