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property taxes

HI there…..I was wondering what happens in the case that when a person files for bankruptcy and they are behind in their property taxes.

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One Response to “property taxes”

A licensed trustee said...

Nothing – property taxes are a secured debt that ranks in priority against your home. In layman’s terms that means the debt survives your bankruptcy and must be repaid in full.

A few words of caution about property taxes:
– if/when you fall 3 years behind in your property taxes the municipality in which you live has the right to seize and sell your property to pay the arrears.

– Further, if you start to repay the debt, your payments are applied to the newest detb first – to avoid the 3 year problem you need to repay the entire debt.

– and finally, if your mortgage company discovers you are behind in your property taxes they may pay them out and then assess you a penalty and interest.

Don’t let this problem go unchecked – talk to someone and sort it out before you house is at risk.