While I am still waiting to hear from my attorney, can anyone tell me how dischargability of tax debt is determined? How does a filed lien affect a discharge of old tax debt - can the discharge even be granted? If so, what is done about the lien?
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IRS lien/ discharge of tax debt
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the lien still is secured by any property you have pre-filing. Since you can exempt very little from the IRS, you can't go by what you exempted in your BK because most of that can't be exempted from the IRS.
Realistically this is would only really apply if you have a home or 401(K).
The 401(k) is not exempted from the IRS, because it was excluded from your BK.
If you don't have the either of the 2 above most likely the lien will be released.
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