Tax Liens Not Avoidable in Chapter 7 Bankruptcy Cases
Although some tax liabilities can be discharged in Chapter 7 bankruptcy, tax liens are not avoidable. If a taxing authority (e.g. Internal Revenue Service or NC Department of Revenue) has recorded a tax lien on a debtor’s property before filing for bankruptcy, the tax lien remains in place despite a debtor’s personal liability being discharged through bankruptcy. That tax lien may have to be satisfied before the property subject to the lien can be sold. In that sense, a tax lien is quite different than a judgment lien which may be avoidable depending on the relevant facts. Chapter 13 bankruptcy permits a debtor to provide for certain treatment of a tax lien. If your property is subject to a tax lien the attorneys at Sasser Law Firm will help you understand the alternatives available to you.
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For more than 20 years, the Sasser Law Firm has been helping individuals and business owners sort through financial hardships to see the light at the end of the tunnel. Our North Carolina bankruptcy attorneys are all board-certified specialists, which means we have passed a complex exam, undergone a thorough peer review, and continue to earn legal education credits in this ever-evolving area of law.
