Property taxes dischargable?

[slam22]

Does anyone know if delinquent property taxes are dischargable in bankruptcy? Thanks.

[FreshLikeADaisy]

Slam, I'm no expert when it comes to taxes, but *most* taxes are NOT dischargeable in a Chapter 7. There is an exception to this in regard to older taxes that have aged past a certain point, but that's the extent of my knowledge on that. Maybe someone else will chime in if that info is needed.

But that's not the end of the story. If those property taxes are due on a property that is foreclosed, the back taxes become the problem of the bank because the bank can't sell the property -- more specifically, transfer the deed -- without bringing the taxes current. Post-foreclosure, the bank may include them in a deficiency judgement, but a deficiency judgement is just like any other unsecured debt in a Ch7 and DOES get discharged.

So basically, the answer to your question is most likely NO, unless the property is foreclosed, and then it's YES, in a roundabout sort of way. Good luck!!!

[BKFLA]

My attorney told me that he'd "take care of it". I guess because it's part of your foreclosure (assuming that's what you're doing), it's all included? Not sure on this, but seeing how my attorney didn't think it was a big deal, I'm leaving it to him.

[kl030505]

My attorney told me the burden of past due property taxes fall on whoever keeps the house. So, if we re-affirmed our mortgage to keep the house, it was our job to get taxes current. If we surrender (which is what we are doing) then the past due taxes go back to the bank and will be included in our discharge.

[slam22]

Slam, I'm no expert when it comes to taxes, but *most* taxes are NOT dischargeable in a Chapter 7. There is an exception to this in regard to older taxes that have aged past a certain point, but that's the extent of my knowledge on that. Maybe someone else will chime in if that info is needed.

But that's not the end of the story. If those property taxes are due on a property that is foreclosed, the back taxes become the problem of the bank because the bank can't sell the property -- more specifically, transfer the deed -- without bringing the taxes current. Post-foreclosure, the bank may include them in a deficiency judgement, but a deficiency judgement is just like any other unsecured debt in a Ch7 and DOES get discharged.

So basically, the answer to your question is most likely NO, unless the property is foreclosed, and then it's YES, in a roundabout sort of way. Good luck!!!

We are planning on letting our house go. As of right now in this market (Southern California) we are about 125k upside down. We'll run all this past our attorney prior to filing. I just wanted to get an idea. Thanks.