QUESTION
Is chapter 13 right for me when I owe $15,000 in property taxes?
Asked on Oct 15th, 2012 on Bankruptcy - California
More details to this question:
I am currently fighting for disability and it has been sent to a law firm and they are asking for $7500 up front.
9 ANSWERS
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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No other debt? A single creditor case will not fly in NJ.
Answered on Jun 26th, 2013 at 11:49 PM
Chapter 13 will simply defer foreclosure and a sheriff's sale. Shop around for other attorneys as $7500 is too high.
Answered on Oct 18th, 2012 at 2:23 PM
Bankruptcy & Debt Attorney serving Syracuse, NY
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Theodore Lyons Araujo
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Not necessarily. The main advantage of 13 is that you get to pay most debts at zero percent interest. Property taxes carry interest even in the BK. Better to negotiate with the tax authority for property taxes unless they are selling the property at a tax sale, and then you must file to save the home.
Answered on Oct 17th, 2012 at 9:53 AM
It can be. It will give you from 36-60 months to pay this debt.? For 60 months that's $250 a month. It will actually be a bit higher as you have to pay the Trustee's fees (about 10%) and your wonderful attorney. If you can afford that payment, a 13 could help you out a lot.
Answered on Oct 17th, 2012 at 9:53 AM
Bankruptcy Attorney serving Seattle, WA
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Henry & DeGraaff, PS
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Chapter 13 may be right for you in this situation. It would allow you to pay the tax debt in a 3-5 year repayment plan, while still keeping current on your ongoing taxes. You would need sufficient income (from disability or some other source) to get caught up in 5 years. You should meet with a bankruptcy attorney to review your options.
Answered on Oct 17th, 2012 at 9:51 AM
Chapter 13 could allow you to repay your property taxes off over a 60 month period of time, but whether it would be right for you would depend on whether you could afford to do this and make your ongoing tax payments so that this situation doesn't happen again. I hate to say it, but the value of your property and whether you have any equity in it would also be an important consideration.
Answered on Oct 17th, 2012 at 9:51 AM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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Perhaps not. You will have to review your entire financial circumstances with an attorney in your area.
Answered on Oct 17th, 2012 at 9:49 AM
Bankruptcy Attorney serving Myrtle Beach, SC
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Law Office of Margaret L. Evans, PC
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certainly could be, but it depends on the other facts and circumstances of your case, too.
Answered on Oct 17th, 2012 at 9:48 AM
Bankruptcy Chapter 7 Attorney serving San Diego, CA
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Law Office of Asaph Abrams
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Chapter 13 could permit you to repay the real property tax arrears over up-to 60 mos. This answer (by San Diego bankruptcy attorney, Asaph Abrams) doesn't address all facts & implications of the question; it's general info, not legal advice to be relied upon. It creates no attorney-client relationship; it may be pertinent to CA and/or its Southern District Bankruptcy Court only, and it's independent of other answers. It may be time sensitive, as in past the "Use by" date: laws and case law change. Hire legal counsel before acting or refraining from bankruptcy/legal action.
Answered on Oct 17th, 2012 at 9:48 AM