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State income tax lien on foreclosing home

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    State income tax lien on foreclosing home

    I know that we are responsible for past (2007) IRS and State income taxes that we owe, even with the Chapter 7 we have filed. My question that I am hoping someone can help me with is that our house will be going into foreclosure after the bankruptcy. There is a tax lien from the state for the income tax owed. The IRS did not put a lien on. Will the state tax have to be paid as part of the foreclosure sale and if so, would that mean that debt is satisfied and we would not owe it anymore?

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