Can I Get Rid Of An Excise Tax If I File For Bankruptcy?
By L. Jed Berliner, Western & Central Massachusetts Bankruptcy Attorney on Aug 12, 2009 in Debts Not Dischargeable
Say you get a tax bill from your state, or municipality, for owning a motor vehicle or other personal property excise tax (BUT NOT REAL ESTATE PROPERTY TAXES !!!). These excise tax bills reflect the government having “assessed” a tax on you, which means nothing more than a decision on what you owe it. That assessment date starts the clock ticking for getting is discharged in bankruptcy.
Excise taxes are discharged in bankruptcy if the underlying assessment date or date you acquired the personal property which led to the tax, was more than three years before you file your bankruptcy case. Otherwise they are not affected by a bankruptcy case, although they still need to be listed.
Real estate property taxes are a different animal. They are a lien on your real estate, and they don’t go away. These taxes get paid by you when billed, or they get paid (with a lot of interest) by you when the property is sold, or they get paid by the buyer at a foreclosure sale. In Massachusetts, they are not your obligation after a foreclosure sale.
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