Forum Rules (Everyone Must Read!!!) (updated: 04/28/2015)

Welcome to the Bankruptcy Forum. Bankruptcy (BK) Forum is known as and will be referred to as BKF hereinafter. In order to ensure a long term success of our vibrant community, we have established certain rules and guidelines to which everyone must adhere to. Please take your time to carefully read our rules, before you start to participate in the community.

Things you agree to do: (BKF) users agree to use the search function before starting a new thread. This prevents duplicate discussions and allows for better organized topics.

All BKF users agree to read the sticky posts which may be available at the top of a forum page. These Sticky posts often contain valuable information. They may also outline more rules and guidelines specific for that particular forum, stickies are put in place by that forums moderator(s) or admin(s).

Things you agree not to do:

All BKF users agree not to call people names or write a post simply to make a personal attack, or get a negative reaction; this behavior is not allowed on our forum. The use of derogatory language aimed at anyone will be severely dealt with. There is no need to agree with each other, or to even like each other. However, by signing onto you agree to treat each member and guest with the respect they deserve. No threats or personal attacks will be allowed.

All BKF users agree not to discuss, engage, or encourage any behavior or activity which violates the law. Discussion of drugs, violence, murder, theft, vandalism, fraud or any other issue which could be used to help individuals break the law is strictly forbidden.

All BKF users agree not to "bump" old threads, unless there is a specific benefit to the community by doing so. But in most cases, please don't post in very old threads, instead start new threads.

All BKF users agree not to attempt/use another members account. It is against BKF rules to use any account other than your own. Impersonating another member will result in an immediate ban. It is also against the rules to open more than one account in your own name without permission from a moderator or administrator. If you have been banned for any reason, it is against the rules to open another account. If you were banned temporarily and you are caught using another account you will be banned permanently. Choosing a moniker which is similar in either sound or spelling as a moderator or administrator is strictly forbidden.

All BKF users agree not to private message any moderator, admin, or other member with questions related to their personal circumstances (Questions about the forum or issues with the forum are ok). This forum only works when members share their experience and insights with everyone.

Things you agree not to post:
All BKF users agree not to post any derogatory/racist/or sexist remarks. This includes attachments, links and all information contained within posts, signatures, and avatars, failure to comply with this rule will result in a permanent ban.

All BKF users agree not to post any copyrighted or trademarked information without the express written permission of the owner(s) / proper citation of source.

All BKF users agree not to post any real names, addresses, telephone numbers, email addresses, social security numbers, or any other personal details (their own or other people's).

All BKF users agree not to post links, pictures, attachments, videos, or the like of pornographic content, objectionable material or extreme violence, whether cartoon or real.

All BKF users agree not to use BKF for advertising purposes without a written contract between yourself/company/agent and the administration of BKF. Blatant advertising will result in a ban.

All BKF users agree not to spam the forums. Spam includes but is not limited to posting erroneous, non-relevant-useless, off-topic, or meaningless posts. Spam may also include posts which contain no text, or large areas of blank space between lines. Simply posting emoticons without text is considered spam. BKF is the largest bankruptcy message board and all the content is intended to help other users. Please help us improve the quality of our forum by making sure that your posts are well-worded, spell checked, grammatically correct and syntaxed.

Regarding actions of moderators and administrators:

The forum is no place to air out your opinion or be judgmental of our staff and its capabilities.

All BKF users agree not to abuse or mistreat moderators or administrators. It is against BKF rules to post any information regarding bans or any other action taken by a member of the moderating or administrative team. If you wish to discuss bans or warnings please do so via PM. To place a complaint against a moderator, send a PM to a super moderator. All Moderators are equal, any decision made by a moderator must be adhered to. If a moderator tells you something you do not like, do not go to another moderator looking for a different answer. If you are caught doing this you will be banned. The moderators work as a team and respect the decisions made by their peers and will help enforce them unless an administrator tells them differently.
If you have an issue with how the forum is run, then notify one of our administrator and we will look into the situation. We have in the past and still do appreciate any input that you offer this forum. But critical input and/or judgmental postings towards the staff will result in you getting banned.

Should you find a thread offensive or out of line, then notify a Mod in a PM so they can evaluate the situation and do the action deemed necessary.

All moderators do have active "other" lives outside of the forum and help moderate this forum in their spare time throughout the days and weeks.

If you have a problem with a member or Mod follow the proper channels of reporting it.

BKF reserves the right to delete any posts which contain anti-BKF comments or discussion. Any bashing of moderators or administrators, or any of their discussion or actions will also be deleted, and the responsible posting party(s) will be banned. Any public anti-BKF advertising, communication, or posts on another forum will result in permanent bans as well.

All warnings and bans are decided by individual moderators and administrators. Warnings are preferable to bans however, for serious offenses and repeat abusers bans will go into effect. The length of the bans can vary from several hours to permanent.

All messages posted or sent including through PM are the property of

All BKF users agree not to advertiser on the forum (Niether by posting, private messaging or using your signature). If you are a company/attorney/legal adviser wishing to advertise on the site or sell a product, you must contact the head administrator and inquire about our advertising packages.

All bankruptcy related opinions expressed on are those of their authors and not necessarily of BKF, its staff or representatives.

You agree not to copy any material/post/content from BKF without written permission from our head administrator .

By posting on this forum you agree to these terms and conditions, including any punishment deemed appropriate by moderators or administrators in the event of an offense.

Administrators/Moderators can change these rules at any time without prior notice.
See more
See less

Tax Lien Sale - NJ

  • Filter
  • Time
  • Show
Clear All
new posts

  • Tax Lien Sale - NJ

    Hi Everyone,

    I have a couple of questions about Tax Lien Sales in NJ, but first a bit of background.

    Filed for Chapter 7 in August 2013. We surrendered the house in the bankruptcy and stopped making payments at that time (no mortgage, but a very large home equity loan). We also stopped paying the property taxes.

    Bankruptcy discharged in December 2013. We are still in the house, just riding it out and putting money away until we have to leave.

    Still haven't heard anything from the bank, but now our house is going up for tax lien sale in June. I understand that in NJ if someone buys the tax lien, they have to wait 2 years before they can foreclose, and that if the lien does not sell, then the township can foreclose in six months.

    My question is this...does that mean the foreclosure process would start in two years (or six months if the township held the lien) or would they just come in and take the house outright at that time? (hope that makes sense!) I'm thinking if the process would only be starting at that time, then it could still be many years before this house is foreclosed.

    We were told by our attorney that the bank would be paying the property taxes. Obviously they haven't been. Will the bank be notified of the tax sale? I would think they would want to buy the tax lien so they don't lose their right to foreclose...

    Also, can the person who buys the tax lien come after you for the back taxes? Can they attach your wages or get a judgment against you for the amount of the lien?

    Any knowledge or advice would be greatly appreciated! Thank you!

  • #2
    This is what I know of tax certificates, tax deeds, and tax deed foreclosures.

    First, when you don't pay property taxes, the municipality (county, city, town) sells a tax "certificate" so someone willing to pay your taxes in exchange for payment in the future and some interest rate. There's also a possibility that a tax certificate purchaser could obtain title to the property in the future. The certificate purchaser/holder then waits 2 years (in most States, including Florida), before they can apply for a tax deed. The certificate holder cannot bother the homeowner during that time.

    (The only thing I like about how they do it in Florida is that the tax certificates are actually sold at bid! The certificate purchasers bid from 18% interest all the way down to 0.25%. Before I filed in 2008, one bidder purchased a tax certificate for 0.25% interest which his the lowest!)

    Once the two years has elapsed, the certificate holder can apply for a tax deed. The tax deed application is what starts the foreclosure process. There are many rules and amounts involved that I won't go into, but this is the point where the tax foreclosure starts. (The only problem for certificate holders is that many don't want the property, they just want the interest, penalties, fees and the original tax due! If the auction yields no bidders, the certificate holder MUST take the property. They may not want the property as it is likely in an HOA in Florida! So, strategy is key!)

    As for your questions, the person who purchases a tax certificate cannot come after you personally, but may only go after the property. As such, this is called "in rem" or against property. This is not an "in personam" or personal lawsuit. A tax certificate holder's only recourse is to apply for a tax deed which forces a foreclosure sale. If they did their homework, then the property forecloses for the amount of the unpaid tax (including penalties, fees, attorney fees, late fees, special fees, any other fees they seem to want to add). In Florida, a homestead property can't be sold at auction for less than 50% of assessed value at a tax sale, plus the unpaid tax.

    The bank is not noticed on a tax "certificate" sale because this is just something normal that the taxing authority does. It (the certificate itself) does not convey the property. When the foreclosure beings, the bank would be notified because the bank has an interest in the property.
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    I am not an attorney. Any advice provided is not legal advice.


    • #3
      I think there is a very active market in tax liens in NJ, the township should have no trouble selling it, then you can rest easy for 2-3 years until they try a tax foreclosure. Most likely the bank will start a foreclosure against you in the meantime and the tax lien owner just becomes an additional defendant. So overall I don't think it will have a major impact on your situation.
      filed chapter 13..confirmed...converted to chapter 7...DISCHARGED!


      Unconfigured Ad Widget