Back property taxes and hardship discharge

[jennifer123]

We are about 14 months into a 60 month Chapter 13. I was just diagnosed with fibromyalgia and am unable to continue working. We would like to get a Chapter 13 hardship discharge but still owe back property taxes that were being paid through the chapter 13. Will the judge allow us the hardship discharge even though we have not paid all of the back taxes on the property? Or will we be forced to give up our home? Any thoughts would be appreciated. I'm still waiting to hear from our attorney.

[justbroke]

Whether your diagnosis of fibromyalgia meets the standard for a "hardship discharge" is fact specific. You would need medical testimony that the fibromyalgia is and will continue to prevent you from employment for an indefinite period of time. You need to prove that the condition is permanent.

As for the taxes and giving up your home, it really depends. If those back taxes are already "secured" debt, then you will need to pay them. You cannot discharge certain taxes, and especially taxes that have become "secured" either via State statute or by tax certificates. Your attorney will need to look at the specifics of your tax liability. (If they are listed as "priority unsecured debt" or "secured debt", they are likely non-dischargeable.)

[jennifer123]

I realize the taxes won't be discharged and expect to pay them over time. I just will not be able to pay them right now, before I ask for the hardship discharge. So my question is more to the matter of can we given a hardship discharge with a balance of property taxes that will still be due after the discharge.

As for the fibromyalgia, my doctor will provide evidence of my condition and his recommendations that I cease working.

[justbroke]

I realize the taxes won't be discharged and expect to pay them over time. I just will not be able to pay them right now, before I ask for the hardship discharge. So my question is more to the matter of can we given a hardship discharge with a balance of property taxes that will still be due after the discharge.

You can be given a hardship discharge, but that won't cure your tax issues nor your vulnerability to foreclosure due to tax deed sale.

As for the fibromyalgia, my doctor will provide evidence of my condition and his recommendations that I cease working.

Note evidence. He will have to testify under oath in the court.

[jennifer123]

I don't think we are so far behind in property taxes as to warrant foreclosure sale, and we will be able to pay them over time. I believe in Los Angeles County they will give us 5 years to pay them.

The court would want my doctor to testify? They will not accept written evidence?

[justbroke]

The court would want my doctor to testify? They will not accept written evidence?

No, because written evidence is "hearsay". The Trustee fighting you will only need to have the written evidence stricken as hearsay, and voila... no proof. This is the standard rules of evidence (Federal Rule of Evidence). This is why experts and people need to testify and "affidavits" are not acceptable.