Wednesday, September 14, 2011

Are real property taxes discharged in bankruptcy?

By Crispin Lozano

Question: Can I discharge the real estate taxes due on my house if I file bankruptcy?
Answer: Real estate taxes are considered secured debts because it includes personal liability and lien on the property subject to the tax.  In bankruptcy, only the personal liability is discharged.  The lien on the property is still attached until it is paid.  If you intend to keep the property, then you must pay the real estate tax.  If you intend the property to be foreclosed by the bank, the bank or the new owner will have to pay the real estate tax.
 
Question: In what situation may a real estate tax be discharged?
Answer: You can only discharge your personal liability on real estate tax if the tax is due more than one year by the time you file bankruptcy.  Although your personal liability is discharged, since real estate taxes are secured debts, the lien on the property is still attached and cannot be discharged in bankruptcy.  If you intend to keep your house you will have to settle it before you can sell or transfer the property with clean title.
 
Question: What will happen if I was discharged in bankruptcy and I did not pay the real estate tax?
Answer: The government can foreclose your house without court permission to settle the unpaid taxes.  Therefore it is important to settle the real estate taxes due if you want to keep your house.
 
Bankruptcy News
1. If you are being sued by your creditors, most money judgment can be eliminated in bankruptcy.
2. Collection actions continue and you can be sued if you are in debt settlement.
3. Chapter 7 will eliminate all unsecured debts.  If you are near retirement age, you must eliminate most of your debts.
4. Bankruptcy will stop foreclosure actions.  If your trustee sale date is 10 days before, you can still file for bankruptcy.
5. If your salary is being garnished, you have a court case about debts or you are being harassed by creditors, bankruptcy can stop garnishment, court cases, harassing creditors and eliminate the debt.
6. Bankruptcy is cheaper, faster and safer than debt settlement which has no guaranteed success.
7. Preserve your health, eliminate stress and live a happy life by eliminating your debts which is the root of all problems.
 
Immigration News
1. On August 30, 2011, we received an approval from Immigration Court of an adjustment of status for an alien who was denied the adjustment of status from another attorney.
2. On July 28, 2011, we received an approval of adjustment of status for an alien who entered the U. S. without valid documents but qualified under Sec. 245(i).
3. On July 21, 2011 we received an approval for withholding of removal in Immigration court for an old lady who could not come back to her country because of political situation.
4. On June 28, 2011, we received an approval in Immigration Court for an adjustment of status.  The applicant was previously denied on the I-130 petition because they did it without an attorney.  We filed a second I-130 petition that was approved based on good faith marriage.
5. On March 1, 2011, we received an approval of adjustment of status by an Immigration Judge for an alien who was originally denied adjustment of status based on petition by employer.
6. On January 25, 2011, we received an approval of a self-petition by a battered spouse.  Her entry with a different name was forgiven.
7. On December 23, 2010, we received an approval from the Immigration Court for a waiver of misrepresentation for an alien who entered as single but actually married.
8. On January 5, 2010, we received an approval in Immigration Court of an adjustment of status based on good faith marriage despite an age difference of 18 years.
9. Abused spouse of U.S. citizen or permanent residents can self petition even if there is a problem with the entry documents such as C or D visa or entry without inspection or assumed name.
10. Individual Tax Identification Number (ITIN) can be used for filing tax returns and is required before bank accounts can be opened.
Crispin Caday Lozano was born in the Philippines and a naturalized U.S. citizen.  He is an active member of the State Bar of California, the American Immigration Lawyers Association and the National Association of Consumers Bankruptcy Attorneys.  He specializes in immigration law and bankruptcy law.  He earned his Juris Doctor at Western State University College of Law in Fullerton, California.  He is also a Certified Public Accountant, a Real Estate Broker and a Bachelor of Business Administration Cum Laude graduate.  He has four offices which are located in Hayward, San Jose, and Cerritos, California.  You can contact him at telephone number 1-877-456-9266.

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