Can I Get Rid Of An Excise Tax If I File For Bankruptcy?

12 Aug Can I Get Rid Of An Excise Tax If I File For Bankruptcy?

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 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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L. Jed Berliner practices exclusively in consumer bankruptcy, foreclosure defense, and related consumer protection litigation such as credit card defenses and suing debt collectors. He established his Springfield, MA practice in 1988. Attorney Berliner is a regular and active contributor to the Bankruptcy Law Network, the Bankruptcy Roundtable, and the National Association of Consumer Bankruptcy Attorneys, three specialized consumer bankruptcy forums on the Internet, and is an informal mentor to regional practitioners. He is recognized by his peers as an expert in consumer bankruptcy issues. He thoroughly enjoys being rated "excellent" in his client surveys.

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