Real Estate Tax Bill After Chapter 7 Discharge

[BKinGA]

Hello all,

My chapter 7 was discharged in March 09 and my home was included in the bankruptcy.

It sold/foreclosed on the courthouse steps in May 09.

I have just received a tax bill from the county for $1400 (2 $700 installments), the 1st due tomorrow.

Do I have to pay all or part of it? I live in Georgia.

Your feedback is appreciated. Thanks

[justbroke]

I don't know why they sent it to you. Since the home is IIB, you don't need to do anything. If the deed records are on-line (available over the Internet), you may want to go to your County Recorder's site and look up your old place. See if the deed has actually changed hands yet. If it has, you might want to just call the Tax Assessor and tell them they sent the bill in error!

[BKinGA]

I don't know why they sent it to you. Since the home is IIB, you don't need to do anything. If the deed records are on-line (available over the Internet), you may want to go to your County Recorder's site and look up your old place. See if the deed has actually changed hands yet. If it has, you might want to just call the Tax Assessor and tell them they sent the bill in error!

[justbroke]

Nope none. They mean nothing in the context of your Bankruptcy and the foreclosure of the property. Your in personam, or personal, liability has ended.

What that information from the Tax Collector's site has to do with homes that are sold between two people (or entities). Many times, when you purchase a home mid-year, the HUD-1 or closing form shows a "pro-rated" portion of the property taxes. This is given as a credit to the buyer on the HUD-1, which basically covers the seller's portion of your annual taxes.

The reason why many Tax Assessors/Collectors put that information on that page, is because they are tired of disputes between sellers and buyers over who owes what. The Tax Collector is basically saying they don't care.

But, in your case, it doesn't matter. You have no personal liability and the taxes attach to the home.

[BKinGA]

When I spoke with the county I made them aware of the bankruptcy and spoke with their "bankruptcy specialist" who said that they still took the position that I owed the money because I was the owner of record on January 1. And that unless my Chapter 7 filing specifically included and stated those future taxes, that I still owed it.

[justbroke]

Were you a pro se filer? If so, did you not list the county as a creditor? This can get into a gray area, but you still don't owe the money. Your only problem would be if the Bank doesn't pay the taxes and the County seeks to list you as responsible as well.

I would still send the County a nice letter indicating that you filed bankruptcy and received a discharge from all liability for that debt. But I think you want piece of mind and to stop being billed for it! If you had named the County as a creditor, and they're on your discharge paperwork, then you could send them a copy of the discharge order and injunction.

You don't owe it. On January 1, you won't be the owner of record, so won't get the tax lien applied to you anyhow. On January 1, if the taxes become delinquent, it's not on you anyhow. Like I said, check the records and make sure the Bank or someone else owns the property.

Please note, if you owned the property on January 1, any lien resulting from delinquent taxes will be recorded in your name, unless proof of transfer can be provided within 90 days of the due date. Proof of transfer includes a copy of the recorded deed and the closing statement stating that liability for payment of taxes was assigned to the buyer.

[jandrl2001]

We went through the exact same situation this year. House was forclosed on in june 09. I called the county and she told me since the house was surrendered and included in the bankruptcy i had no further responsibility for it. The people who buy it will pay the taxes due. I only wish the same was true for the two new cars we surrendered and are stuck paying 500 for, lol.

[BKinGA]

We went through the exact same situation this year. House was forclosed on in june 09. I called the county and she told me since the house was surrendered and included in the bankruptcy i had no further responsibility for it. The people who buy it will pay the taxes due. I only wish the same was true for the two new cars we surrendered and are stuck paying 500 for, lol.

I wish my county had told me I wasnt liable.

Were you a pro se filer? If so, did you not list the county as a creditor? This can get into a gray area, but you still don't owe the money. Your only problem would be if the Bank doesn't pay the taxes and the County seeks to list you as responsible as well.

I would still send the County a nice letter indicating that you filed bankruptcy and received a discharge from all liability for that debt. But I think you want piece of mind and to stop being billed for it! If you had named the County as a creditor, and they're on your discharge paperwork, then you could send them a copy of the discharge order and injunction.

You don't owe it. On January 1, you won't be the owner of record, so won't get the tax lien applied to you anyhow. On January 1, if the taxes become delinquent, it's not on you anyhow. Like I said, check the records and make sure the Bank or someone else owns the property.

I was not a pro se filer. I do want piece of mind and dont want any further billings nor the possibility of possible garnishment, etc. I did not name the county as a creditor, my attorney handled that and did not name the county.

But is the January 1st referred to for 2009 or 2010? I was thinking they meant for 2009/me.

But if they do mean 2010, then you are right, the lien would be on the new owner. Im going to call the county back tomorrow and see how they respond and update the post. And yes there is a new owner on file with the county now.

[justbroke]

I think it refers to January 1 of 2010. Yes, please come back and let us know.

[StartingOver08]

JustBroke is usually right on these things. However, I do believe the County Tax Assessor is referring to Jan 1 2009 rather than Jan 1 2010.

Real Estate taxes are generally collected in arrears. Your bill for 2009 comes out now (in many districts) for the 2009 calendar year Jan 1 2009 thru Dec 31 2009. The tax collectors office is only seeking to collect the money. They do not care who pays for it, that is why they are telling you it is your responsiblity. Their "bankruptcy specialist" has a policy to collect the money. He/she is not going to get involved with any legal advice or interpretation at all.

JustBroke's main point is exactly correct: You are no longer personally responsible for payment of your foreclosed/surrendered property as a direct result of your successful BK. The tax collectors office will never tell you that! The bank will have to pay the taxes to keep clear title on the property to resell the asset.

[BKinGA]

Here is an update and it sounds pretty good:

I called the county back and found out that in 2005 the GA Code has changed and the FiFa action is directed to the current owner as of the date of default which would be 11/17/09. Since there is a new owner it should be them. However the county rep was going to run it by their legal department to make sure and let me know.

Also I called my BK attorney and he said that I should be okay, but if the county did indicate they would come after me, he would re-open my BK and add the county to it.

Are there any adverse ramifications if my BK was re-opened for that?

Sounds like it wont need to happen but just in case, any feedback is appreciated.

[justbroke]

Are there any adverse ramifications if my BK was re-opened for that?

Not at all, but it may cost you $260.00 plus your attorney fees.

Best of luck to ya!

[OhioFiler]

Liens are always attached to the property not the person.

The title company or title insurance company are responsible for making sure the newest owner has a clear title. I wouldn't worry about a thing.

[Tom_Mi]

I would add that if you ignore it, the bank will eventually pay them to avoid foreclosure. (they did that on 3 apt buildings and my home)

And the bank knows you don't owe them anything.

[BKinGA]

Not at all, but it may cost you $260.00 plus your attorney fees.

Best of luck to ya!

Hopefully it wont come to that, but if it did, $260 is cheaper than $1400.

Thanks to everyone for their comments!