310.376.9865
You are filing bankruptcy, and a portion of your debt is back taxes. Your bankruptcy attorney has advised you that you have to jump through some hoops for the taxes to be dischargeable.
OK, let’s assume you meet the 5 delineated qualifications and your tax liabilities will be discharged. So, everything is good, right?
There is one more question that should be answered. Has the taxing authority filed and perfected a “tax lien?”
A perfected tax lien which has been properly recorded will not be affected by the bankruptcy, even if the underlying tax liability has been discharged.
However, the tax lien attaches to any assets owned PRE-BANKRUPTCY. Any assets accumulated post bankruptcy are not affected. So, the bankruptcy has eliminated your tax liability, but the lien still attaches to any pre-petition property owned. This is true, even if the asset was exempt and the bankruptcy proceeding was unable to make a claim on the property.
In conclusion, make sure you advise your bankruptcy lawyer, not only of any tax liability, but of any letters you have received from the IRS. Your bankruptcy attorney can review the letters and determine if a lien has been filed, or if it is necessary to research county recorder to see if a lien has been filed, so he can properly advise you of any land mines.
If your assets are minimal, your bankruptcy attorney may be able to take steps to have the lien removed.
DISCLAIMER: The content of this website is intended for informational purposes only. Nothing herein is intended to form the basis of an attorney-client relationship or constitute legal advice.
Los Angeles/Orange County Chapter 7 Bankruptcy Attorney- A Debt Relief Agency.
- Law Offices MJ Mann Bankruptcy Attorney
- 2706 Artesia Blvd, Suite BK
- Redondo Beach, CA 90278
- 310.376.9865
