Tax Issues - Do I have this right?

[Scoutitout]

I'm about to file my Chapter 7. I have two years of tax debt from 2003 and 2004. These returns were filed on time, without extension. I have other tax debt that does not meet the requirements and will not be discharged. I made installment payments on them until about 3 months ago. As I understand it the tax lien is technically created when the tax debt is assessed. I have received notice of intent to file a lien for all the tax debt. I have a no asset case and all my personal property is exempt. I have no real property.

Am I right that I should file a Motion to Determine Value of Lien for all the tax debt, both the ones to be discharged and those that will survive the BK?

Am I right that after discharge from the court I need to extinguish the liens for the tax years that were discharged? If so, how is that done?

Thanks, I know the tax thing is kind of complicated but I'm going this alone so any help is really appreciated.

[freedom7]

well, here in New Jersey, all tax debt that a judgement or lien has been placed on before the filing of bankruptcy remains alive and well after bankruptcy, no matter the three year look back rule or not b/c it is secured debt now even though there is nothing to secure it to. The Irs or state agency will just leave the lien on record until you need to resolve it. If a lien has not been recorded than both years will be discharged, since 2003, due 4/15/04 and 2004, due 04/15/05 both exceed the 3 yr rule. hope this helps a little.

[AngelinaCatHub]

OK, I've been there and doing that to the tune of 27K. There are some "stickies" on this and I advise to do a search as I cannot do this tonight for you. After a certain amount of years, those taxes are excused. Once in bk, the interest and penalties can be removed. you will still owe the taxes at the time of bk but reduced. Anything after filing you must pay. 'Hub