Property Tax Foreclosure is a stay in place?

[Tony733]

I filed Ch7 asset in Nov 2011 personal and business discharged in Feb 2012. I am currently living in my business as a homestead exemption. BK trustee has left my BK open with no movement to close since April 2012.

My past due property taxes were included in sch E (Unsecured Priority Claims) and a claim has been filed against my assets.

Can my buisness property still be foreclosed on, or is the BK stay still in place?

[justbroke]

Can my buisness property still be foreclosed on, or is the BK stay still in place?

The stay ended upon your discharge. Some "skeptical" creditors will still file a Motion for Relief From Stay, unless the Trustee abandoned the property. It really depends on so many things that it's probably not worth speculating. What was the organization of your business? How was the business property titled? Did the Tax Authority file a Motion for Relief From Stay? Did the Trustee abandon the property?

In short, if the taxing authority files a Motion for Relief from Stay (RFS) or has filed one already and it was granted, they can proceed with a tax sale/foreclosure.

As you may be aware, scheduling the unpaid taxes does not remove the right of the taxing authority to foreclose upon the property. It only removes your legal responsibility to pay the taxes.

You really need to answer all the questions and figure out what the status of your case. If the business property is still property of the Estate, then it would be protected until the case closes or the Trustee abandons the property.

Do you know why the case is still open?

[Tony733]

The stay ended upon your discharge. Some "skeptical" creditors will still file a Motion for Relief From Stay, unless the Trustee abandoned the property. It really depends on so many things that it's probably not worth speculating. What was the organization of your business? Sole ProprietorshipHow was the business property titled? Under my name Personally Did the Tax Authority file a Motion for Relief From Stay? Not yet but has sent a letter asking to let them know if you are currently in Bankruptcy (I'm sure how to answer that?) Did the Trustee abandon the property?So far the Trustee has exempted the business property as a homestead exemption

In short, if the taxing authority files a Motion for Relief from Stay (RFS) or has filed one already and it was granted, they can proceed with a tax sale/foreclosure.

As you may be aware, scheduling the unpaid taxes does not remove the right of the taxing authority to foreclose upon the property. It only removes your legal responsibility to pay the taxes.

You really need to answer all the questions and figure out what the status of your case. If the business property is still property of the Estate, Within the 30 day limit upon filing the Trustee filed a motion challenging all my exemptions "in total" I was told this was done as a place holder but to date nothing has been entered for over a year.then it would be protected until the case closes or the Trustee abandons the property.

Do you know why the case is still open?

I have no idea why this case remains open. There has been no contact by the Trustee with anything and the County has not filed a Relief from stay of Foreclosure for Property Taxes.

[AngelinaCat]

What state are you in?

[Tony733]

What state are you in?

Washington

[justbroke]

Well, as far as the Taxing Authority should be concerned, you are still in an active bankruptcy! If you are liking this protection, since the case is not yet closed, just don't do anything. The Trustee will eventually close the case. I had an issue where my case didn't close for 6 months. My case was a no asset case and the Trustee must have just forgot about it.

I did not poke the Trustee, and let the sleeping giant just sleep. It benefited me by preventing a few unscrupulous creditors from annoying me. Once the case was closed, about 3 creditors tried to collect on discharged debt. It was most fun!

[Tony733]

Thank you Justbroke: I am "liking" your thinking on using the fact that I am still in "active Bankruptcy!"

I do believe the Trustee has forgot about my case. His last filing in April 2012 was a preliminary status report to the court stating he should have my case closed by May 31st 2012! He also stated then that he still reserves the right to exercise his motion challenging my exemptions "in total".

The Trustee never made clear what exemptions he was challenging.