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Are property taxes discharged with bankruptcy?

In: Taxes and Tax Preparation, Bankruptcy Law, Property Taxes [Edit categories]

Answer:

Property taxes are not in your records so you dont have to worry about them, if your home goes to foreclosure and bank that owns the house will have to pay those taxes if thy want to sell the home in the future, property taxes will be in the house records not yours

== ans ==

The above is one opinion...likely not to be found any place else.

Property taxes, while of record against the property you own, are the owner of the properties obligation.

Taxes, including property taxes, are, like all debts and all assets, whether recorded somewhere or not, included in BK and as such will be handled as a pre-petition liability. They will be settled, albeit frequently paid in full because of their position in BK prorities, but also depending on the assets you have to settle other items.

(BTW, if you were to maintain accounting records - say like a business, your property tax accrued liability would in fact be recorded there, like any other debt/payable).

If your mortgage is in fact foreclosed, the taxes will not be part of the debt the bank or successful bidder needs to be concerned with as they will be settled by the bankruptcy estate.

First answer by ID1289603326. Last edit by IamLostRU. Contributor trust: 1566 [recommend contributor ]. Question popularity: 3 [recommend question].

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