Tax Lien Sale and Chapter 7 ?

[bellee]

My home value has plummeted and my home is exempt under chapter 7 filing requirements.
I have two reasons for needing to immediately file bankruptcy.
I have several small creditors who are personal and their harassment is crazy and nonstop
I have already retained a lawyer and his fees will get too high to deal with them on and on.
Secondly i am facing a tax sale mid september.
I am also in foreclosure and trying to sell my house.
The foreclosure itself isnt a big deal ....

Its the tax sale that Im trying to avoid and can continue to fight the foreclosure with help of my lawyer.

So I am wondering can I file chapter 7 to stop the tax sale ?
I dont like th eidea of Chapter 13 because I have a great new job starting out of state in December.

(my fab lawyer is down in Disney world with her family and I dont want to bug her with this question !)

[aljohnson007]

I don't understand what the concern is over the tax sale and fighting the foreclosure if its not a big deal. When it is foreclosed, the new owner will also inherit the back taxes.

[bellee]

I don't understand what the concern is over the tax sale and fighting the foreclosure if its not a big deal. When it is foreclosed, the new owner will also inherit the back taxes.

I said Im fighting the foreclosure and that fighting it ISNT a big deal (great lawyer and mortgage company lost the note)

So if I initially file Chapter 7 DOES that stop a tax lien sale (upset sale date)
the same as Chapter 13 ?

[goingcrzy]

It should stop the sale, but the BK won't wipe out the tax debt. It will still be on the house.In theory, they can put it back up for sale the day after you are discharged.

[HHM]

Is the tax sale related to property tax, IRS tax, etc?

[justbroke]

I said Im fighting the foreclosure and that fighting it ISNT a big deal (great lawyer and mortgage company lost the note)

So if I initially file Chapter 7 DOES that stop a tax lien sale (upset sale date)
the same as Chapter 13 ?

Never use Bankruptcy just to "stop" a sale. It should be an educated and planned activity.

Filing under any Chapter of the Bankruptcy Code stays just about everything but criminal trials. That means, sure, the sale would be stopped. However, the Tax Lien party need just pay $150 and file a Motion for Relief from the Automatic Stay (MRFS). This MRFS would be quickly approved by a Judge and they could have their Order granting the motion in as little as 3 weeks.

Also, what is this tax sale? Is it from a tax certificate or is it someone else (like the IRS) enforcing a lien?

I'm also wondering if all this maneuvering is just delaying what I see as an inevitable tax sale anyhow? I don't understand all the fuss. Is there a lot of equity or something? Even if you dodge the foreclosure from the lender, you still have a tax lien to satisfy.

I'm not understanding all this maneuvering.

[bellee]

Is the tax sale related to property tax, IRS tax, etc?

property tax.

[justbroke]

property tax.

Then all of my prior questions are in full force and effect!

[bellee]

Never use Bankruptcy just to "stop" a sale. It should be an educated and planned activity.

Filing under any Chapter of the Bankruptcy Code stays just about everything but criminal trials. That means, sure, the sale would be stopped. However, the Tax Lien party need just pay $150 and file a Motion for Relief from the Automatic Stay (MRFS). This MRFS would be quickly approved by a Judge and they could have their Order granting the motion in as little as 3 weeks.

Also, what is this tax sale? Is it from a tax certificate or is it someone else (like the IRS) enforcing a lien?

I'm also wondering if all this maneuvering is just delaying what I see as an inevitable tax sale anyhow? I don't understand all the fuss. Is there a lot of equity or something? Even if you dodge the foreclosure from the lender, you still have a tax lien to satisfy.

I'm not understanding all this maneuvering.

Tax sale for property taxes.
If the house is sold on tax sale day game over.
I have equity in my house.
I will have no problem satisfying the lien, just need more time.

[bellee]

Filing under any Chapter of the Bankruptcy Code stays just about everything but criminal trials. That means, sure, the sale would be stopped. However, the Tax Lien party need just pay $150 and file a Motion for Relief from the Automatic Stay (MRFS). This MRFS would be quickly approved by a Judge and they could have their Order granting the motion in as little as 3 weeks.

My county tax office said they'll take my property off the sale list if they get a a stamped bankruptcy filing from me.
What tax lien party are you referring to ?

[justbroke]

Tax sale for property taxes.
If the house is sold on tax sale day game over.
I have equity in my house.
I will have no problem satisfying the lien, just need more time.

Ok. But the tax-lien folks can still file a MFRS and still proceed. Just letting you know.

[bellee]

Ok. But the tax-lien folks can still file a MFRS and still proceed. Just letting you know.

Hey thanks for the info. I can guess that th etax lien folks will be MY mortgage company. (My mortgage is 380k plus 25k in lawyers fees at this point, taxes total are 17, total unsecured debt and pending suits are 15k, house is worth about 445 (300,00 dollars less than when i bought it 3 years ago) I havent payed th emortgage since january 2008 so i guess this has been a long foreclosure. (i thought the house would sell back in 2008)
The more I read the ins and outs of chapter 7 versus13, the more I just want chapter 7.



As I've said several times, my lawyer who has been handling my foreclosure is awesome, BUT she seems to want me to hang onto my house at all costs.
It's a personal point of pride because she has already put so much effort into the foreclosure case.

I'm starting to think I should just file Chapter7 because I really DONT want to be on 3-5 year plan

Also I was living off proceeds from the sale of my last condo in 2006 and did NOT work at all in 2007 and 2008 (renovating house, dealing with an abusive stalker ex boyfriend, dying grandmother, godmother died suddenly, mom had stroke = not working)
so i dont have any 1040s that i was required to file
I hear theyre needed for filing chapter 13
also my income this year has been sporadic, took in roommates and did some odd and ends work (checking acct shows it)

I have gotten my act together otherwise and am excited about my new job out of state.... Im wondering if I should just file 7 and let go of worrying about the house anymore.

[justbroke]

Well, if we had all the answers, there would be fewer questions. Whether you can actually file a Chapter 7 will be based on the numbers. Since you'll just be starting a new job with regular income, that would help if you were going the Chapter 13 route. You mention that your new job is out of state, so what would that do to your home ownership if you were able to keep it?

I'm really surprised that your lender (mortgagor) hasn't stepped in and paid the property taxes! They usually do this so they don't lose more money if it was to be foreclosed upon for taxes.

[bellee]

I'm really surprised that your lender (mortgagor) hasn't stepped in and paid the property taxes! They usually do this so they don't lose more money if it was to be foreclosed upon for taxes.

You and 3 other lawyers I know are wondering the same thing.