On another site, I asked a question to a man that used to be a taxagent for the IRS. My questions basically asked how to avoid a tax lien after my BK is discharged/closed and what portion of the trust fund taxes would be considered non-dischargeable (probably none, but I thought I would ask) and this was his response.
The IRS has a lien already on all the property and rights to property that you have. That is the statutory lien that arises when the tax is assessed but not paid after the first notice. However, if the IRS has not filed a notice of its lien, the debt is unsecured. If the IRS has not filed a notice of lien prior to the bankruptcy for any debt that is discharged, it will not be able to do so once the bankruptcy is over. Of course, for the tax liabilities not discharged, the IRS can file notices of lien for those just as soon as the bankruptcy is over and, once the IRS can pursue all of the collection means at its disposal (e.g. levy and seizure of property) at that time, too. The IRS can do that before the bankruptcy is over if it gets permission from the court for relief from the automatic stay.
If the IRS has filed a notice of lien and you sell your home, the IRS would have to get paid for the lien to be released. If you cannot pay the full lien out the proceeds of sale, you and/or the buyer must apply to the IRS for certificate of discharge of property from the federal tax lien. Unlike a release, this certificate lets go just that one piece of property from the lien. This request must be made at least 30 days prior to the closing date to allow the IRS to investigate the request and determine how much it will accept to issue the certificate.
If I may ask, how soon could I sell my home after my chapter 7 is discharged or closed to pay some or all of the tax liabilities to avoid a tax lien being filed?
In a chapter 7 (like with a chapter 13), do I find out what portions of the taxes, etc. I owe are priority or unsecured?
How soon is it adviseable to get a second job to fund payment of the taxes in full in a chapter 13? Would I have to have that job for 6 months to be able to have it counted as additional income to fund the plan?
Sorry, I'm full of questions and haven't had a chance to talk to my atty about it yet. I also plan to make an appt. with a tax atty in this next week, but thought I'd get some input here first.
Thanks again for being tolerant and extremely helpful.
P.S. I checked myFico.com and my score was 468.
My score (not from myFico) before Oct was about 740. WOW!!! I've got some serious cleaning up to do, but there wasn't much wrong with my credit report, just lots of slow payments and the BK was already on there. It only took 2 days. I'm amazed. Another reason why I don't need a tax lien on my credit report. Is it possible to have a negative credit score????
The IRS has a lien already on all the property and rights to property that you have. That is the statutory lien that arises when the tax is assessed but not paid after the first notice. However, if the IRS has not filed a notice of its lien, the debt is unsecured. If the IRS has not filed a notice of lien prior to the bankruptcy for any debt that is discharged, it will not be able to do so once the bankruptcy is over. Of course, for the tax liabilities not discharged, the IRS can file notices of lien for those just as soon as the bankruptcy is over and, once the IRS can pursue all of the collection means at its disposal (e.g. levy and seizure of property) at that time, too. The IRS can do that before the bankruptcy is over if it gets permission from the court for relief from the automatic stay.
If the IRS has filed a notice of lien and you sell your home, the IRS would have to get paid for the lien to be released. If you cannot pay the full lien out the proceeds of sale, you and/or the buyer must apply to the IRS for certificate of discharge of property from the federal tax lien. Unlike a release, this certificate lets go just that one piece of property from the lien. This request must be made at least 30 days prior to the closing date to allow the IRS to investigate the request and determine how much it will accept to issue the certificate.
If I may ask, how soon could I sell my home after my chapter 7 is discharged or closed to pay some or all of the tax liabilities to avoid a tax lien being filed?
In a chapter 7 (like with a chapter 13), do I find out what portions of the taxes, etc. I owe are priority or unsecured?
How soon is it adviseable to get a second job to fund payment of the taxes in full in a chapter 13? Would I have to have that job for 6 months to be able to have it counted as additional income to fund the plan?
Sorry, I'm full of questions and haven't had a chance to talk to my atty about it yet. I also plan to make an appt. with a tax atty in this next week, but thought I'd get some input here first.
Thanks again for being tolerant and extremely helpful.
P.S. I checked myFico.com and my score was 468.
My score (not from myFico) before Oct was about 740. WOW!!! I've got some serious cleaning up to do, but there wasn't much wrong with my credit report, just lots of slow payments and the BK was already on there. It only took 2 days. I'm amazed. Another reason why I don't need a tax lien on my credit report. Is it possible to have a negative credit score????
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