Catching Up on Home Property Taxes in Northern Utah

If you’re behind on your home property taxes, Chapter 7 may well not buy you enough time to catch up. However, Chapter 13 likely would.

  Today we cover the 4th one of the 10 ways we listed recently that Chapter 13 helps you keep your Utah home. When we gave the list we wrote:

4. Get Current on Past Due Property Taxes

Filing a Chapter 7 case doesn’t protect you from property tax foreclosure—beyond the four months that a case lasts. However, Chapter 13 does protect you and your home while you gradually catch up on those taxes. …

An Income Tax Lien When There’s No Equity in Your Home

Under the right circumstances Chapter 13 can write off the tax and get a release of the income tax lien.   Income Taxes that Can Be “Discharged” (Legally Written Off) If you owe an income tax debt, it can be discharged like most other debts. The tax debt just needs to meet certain conditions for that to happen. Essentially, two conditions have to be met:
  • 3 years must have passed since the tax return for the tax was due, and
  • 2 years must have passed since that tax return was actually submitted to the IRS or state.
There are a…

A Fresh Start with Unpaid Property Taxes on Your Utah Home

Falling behind on property taxes makes your mortgage lender very nervous. Bankruptcy can help you deal with both the property taxes and your lender.   Is Chapter 7 “Straight Bankruptcy” Enough Help? It possibly can give you enough of a fresh start with your other debts so that you can catch up on your property taxes. But doing so while keeping your mortgage lender also satisfied is difficult to pull off. If you’ve fallen behind on your property taxes, sometimes just writing off your other debts would give you enough financial breathing space so that you could catch up on your…

Chapter 7 vs. Chapter 13–Property Tax Debt

Solve your property tax problem by writing off your other debts or by buying more time to catch up.     Discharge Your Other Debts with Chapter 7 So You Can Pay Your Property Taxes  If you’ve fallen behind on your property taxes, presumably your income has not been enough to meet your expenses plus payments on your other debts. Sometimes just writing off your other debts would give you enough financial breathing space so that you can catch up on your property taxes. Find out from your attorney how much time you would have to catch up on your property taxes.…

Mistakes to Avoid in Utah–Selling Your Home for Being Behind on Property Taxes

Falling behind on property taxes can have serious consequences, but does not necessarily mean you should hurry to sell your home.   Property Tax—the Superior Lien Your local property tax agency usually holds the first lien on your home. That lien comes ahead even of your mortgage. And it’s way ahead of other debts on your home’s title, like creditor judgment liens and IRS and state income tax liens. Your property tax agency can foreclose on and seize your property if you don’t pay the property taxes. And because of its superior position on the title, the property tax agency…

Tax Day 2015 in Utah: The 10 Most Important Ways Bankruptcy Helps Deal with Your Tax Debt

If you owe back taxes in Utah, bankruptcy can help, in many unexpected and powerful ways.   We finish this blog series about taxes with this summary of the most important benefits of filing bankruptcy if you owe taxes: 1. Bankruptcy CAN legally and permanently write off (discharge) income taxes. Income taxes can be discharged, just like a credit card or medical bill—you just need to meet some special conditions that only apply to taxes. Most of the conditions just require waiting long enough. Although there are some other potential conditions that seldom apply, mostly you just need to wait two…

October Filers: How tax refunds are handled in a Utah Chapter 7 Bankruptcy–Part 2

You may be able to keep a refund even if it is not exempt if it’s small or if you wait to file bankruptcy until after spending that refund.     In our last blog post we described why income tax refunds are an issue in a Chapter 7 bankruptcy case, and how to protect a pending refund through exemptions, possibly through a “wildcard” exemption and, in some states, a special earned income tax credit one. Pending Refund A pending tax refund for bankruptcy purposes is one owed to you, and therefore is an asset that needs to be protected, and…