I was just informed by my lawyer that my chapter 7 has been discharged. All the debt was for fed and state income taxes from 1997 and earlier. I asked him how to get the liens removed and he told me that it will take ten years + nine months from filing date of taxes to be lifted. If this is true, what was the point of going bankrupt in the first place when, according to my lawyer, the IRS considers the debt uncollectable after ten years anyway? I thought that discharge meant clean slate, fresh start. Is this debt still looming over me until 2009?
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I don't have a good explanation for you, but tax liability and tax liens are two different kinds of debts. Just like credit card debt, and a judgment on credit card debt are different. You can discharge the underlying credit card debt (the contractual obligation to pay your credit card debt), but a judgment (or lien) create new rights for the creditor and those are not automatically discharged just be filing BK.
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