QUESTION
If we file bankruptcy is our property taxes included?
Asked on Jul 10th, 2014 on Bankruptcy - New Jersey
14 ANSWERS
Assuming you are surrendering the property, yes.
Answered on Jul 16th, 2014 at 8:23 AM
William Rhymer
It really depends on whether you keep the property or not. If you keep the property you will still owe them. If you surrender the property you may not be able to discharge them. However, in Georgia the taxes follow the land. A new owner would have to pay the taxes and so usually you would never have to pay them. You need to schedule an appointment with an experienced bankruptcy attorney and explain your facts to get a more definite answer. Bankruptcy cases are like snowflakes, each one is different.
Answered on Jul 14th, 2014 at 10:12 AM
General Practice Attorney serving Coeur d'Alene, ID
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Michael B. McFarland, PA
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If you are surrendering the property, the taxes will generally be dischargeable, as will HOA fees incurred prior to your filing. However, if the lender does not foreclose or accept a deed in lieu of foreclosure promptly, you could continue to be responsible for post-petition HOA fees. If you are keeping the property, the tax lien (which attaches to the property) remains as a lien, even if you are personally discharged. Depending on the HOA setup, the pre-petition charges may or may not meet the requirements for a lien - although they typically do. You should consult with an experienced bankruptcy attorney for assistance BEFORE you file.
Answered on Jul 11th, 2014 at 4:46 PM
bankruptcy Attorney serving Paul, ID
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Paul N. J. Ross Law, PLLC
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All debts are included in a bankruptcy. Depending on state law, you might even receive a discharge. That does not mean that a lien does not attach to the property though and which would have to be paid to sell the property. If enough, those debts could even force a foreclosure. Depends on the circumstances. Visit with an attorney to properly plan and navigate this area.
Answered on Jul 11th, 2014 at 4:46 PM
Bankruptcy Chapter 7 Attorney serving Los Angeles, CA
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The Law Offices of Peter M. Lively
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All debtors are required to list their debts (including taxes) in their schedules. Income taxes can be discharged if they pass a several part test including (1) they first came due at least three years prior to the bankruptcy petition date, (2) the debtor filed a tax return before the IRS filed a substitute for return and more than two years before the petition date, and (3) that the taxes were assessed more than 240 days before the petition date. There must also be no fraud or intentional failure to pay taxes. HOA fees have their own complications. If you are surrendering the real property associated with the HOA fees, then all prepetition date amounts are discharged but you still owe postpetition amounts until you and the Chapter 7 trustee lose all interest (ownership, equitable and possessory) in the property. If you are keeping the real property, then the specific CC&Rs as well as liens must be evaluated.
Answered on Jul 11th, 2014 at 4:35 PM
Domestic Law Attorney serving Vista, CA
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Ralph L. Williams
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No. Property taxes attach to the real property. Past due HOA fees can be dischargeable if the HOA has not recorded liens against the real property.
Answered on Jul 11th, 2014 at 4:32 PM
Property taxes are secured against your property, and HOA dues might be, depending on your contract. The HOA often sues the homeowner to obtain a lien against their property. Therefore, if you surrender your property as part of the bankruptcy, you can discharge your personal responsibility on the taxes and the HOA dues. However, any HOA dues accruing after you file bankruptcy, until the property is no longer in your name, are not dischargeable. Homeowners often get caught in the trap of paying HOA dues after their bankruptcy because it takes so long to foreclose on the property. Thus, it is in your interest to transfer the deed as quickly as possible and maybe have a deed in lieu of foreclosure all lined up before you file, to minimize your exposure to extra HOA dues.
Answered on Jul 11th, 2014 at 1:16 PM
If you file a Chapter 13 bankruptcy, you can include your property taxes and HOA payments. You will have to pay these debts, but you can do it over a period of 5 years. While you are in the bankruptcy, neither the county nor the HOA can sue or foreclose on you, so long as you make the required payments.
Answered on Jul 11th, 2014 at 12:31 PM
Bankruptcy Attorney serving Walnut Creek, CA
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Alan E. Ramos Law Offices
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Your property taxes stay attached to the land and is not discharged. In California, you have no personal liability for property taxes. Your personal liability for HOA assessments up to the time of filing will be discharged; however, if the HOA placed a lien on the property, that will remain. Also, any HOA assessments that accrued after the date of filing are not discharged.
Answered on Jul 11th, 2014 at 12:15 PM
HOA fees from prior to filing can be discharged, post-filing HOA fees and property taxes cannot.
Answered on Jul 11th, 2014 at 12:05 PM
Complex Litigation Attorney serving Costa Mesa, CA
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Thomas Vogele & Associates, APC
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If you successfully complete your bankruptcy case and obtain a discharge, it does not apply to taxes or fees assessed by governmental agencies. Thus, your property tax obligations will survive and you can lose your house. Your HOA fees might be discharged, depending on the form and nature of the HOA. Check with a good lawyer in your area before you do anything. Most will give you a free 30 minute consultation. Use that time wisely and ask questions that are important to you. You probably should write them down along with the answers you get.
Answered on Jul 11th, 2014 at 11:46 AM
To keep the house, you have to pay the back taxes. If you surrender the house, you don't have to pay the back taxes but you do have to pay the ongoing taxes on the property as long as your name is on the title to the property. Filing bankruptcy & stating that you intend to surrender property does nothing to take title to the property out of your name, and in some circumstances, lenders can be very slow about foreclosing on underwater properties.
Answered on Jul 11th, 2014 at 10:48 AM
Probate Attorney serving Friendswood, TX
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Law Office of Melissa A. Botting
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All debts are included in bankruptcy. The treatment of those debts depends on your filing. If you file a 13, the property taxes and HOA fees can be paid over time. If you file a 7, the debt goes with the property. If you surrender the property, you are not liable for the debt.
Answered on Jul 11th, 2014 at 9:38 AM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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Yes, they are included, but may or may not be dischargeable depending on your circumstance.
Answered on Jul 11th, 2014 at 8:12 AM