Are unsecured property tax obligations discharged in bankruptcy? 8 Answers as of March 08, 2011

Is there a statute of limitations on unsecured property tax obligations? Or rather, does bankruptcy take care of this?

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David R. Fondren, Attorney at Law
David R. Fondren, Attorney at Law | David R. Fondren
Personal property taxes lose their priority under section 507(a)(8)(B) after one year. Real Estate taxes usually are secured by the real estate and are still collectible. I am not aware of other types of property taxes. Read the statute and case law to see how it effects your particular situation.
Answer Applies to: Missouri
Replied: 3/8/2011
William C. Gosnell, Attorney at Law
William C. Gosnell, Attorney at Law | William C. Gosnell
Yes they are discharged in bankruptcy.
Answer Applies to: Tennessee
Replied: 3/7/2011
Gus Johnson Attorney at Law
Gus Johnson Attorney at Law | Gus Johnson
Normally property tax liens remain a lien on the property after bankruptcy.
Answer Applies to: South Dakota
Replied: 3/3/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
By secured property taxes are you referring to real property taxes? If so they say with the real property forever. Bankruptcy will not discharge those taxes.
Answer Applies to: California
Replied: 3/3/2011
Ferguson & Ferguson
Ferguson & Ferguson | Randy W. Ferguson
Tax obligations are unsecured priority debts. Assuming your talking about real estate taxes. They would be a lien against real estate.
Answer Applies to: Alabama
Replied: 3/3/2011
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    Property taxes generally follow the property. So, if you keep the property you will owe the money. If the property is sold or foreclosed, you should not owe any money.
    Answer Applies to: California
    Replied: 3/3/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    If you are referring to real property taxes then that is a secured debt. The County has a lien on the property for the taxes. They are not discharged in bankruptcy. There is no statute of limitations on secured debt. You have no personal liability for the property taxes but if not paid then eventually the County sells the property to pay the taxes owed. If you lose the property in foreclosure then you never have to pay those taxes. They become the obligation of the new owner. It is as if the property itself owed the taxes. This is called "in rem" liability which means it is the liability of the property itself as opposed to the personal liability of the owner of the property. The County does not care who pays but if no one pays then they sell the property and get their money.
    Answer Applies to: California
    Replied: 3/3/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    Property taxes are not unsecured but rather secured to the property. If surrendering property, prop taxes are generally wiped away with foreclosure, short sale or BK.
    Answer Applies to: California
    Replied: 3/3/2011
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