If you owe money to the IRS, one method they will use to obtain your property is to place a lien on it. If this is the case, you will need to call a bankruptcy lawyer for help when filing for bankruptcy so you can know what will happen to your liens and your property during the bankruptcy process.
What a Lien Means
When a lien has been placed on your property, the IRS then has the ability to sell the property to pay off the debt. The lien remains on the property for ten years or until you are able to satisfy your debt.
How to Remove a Lien
The best way to have the liens taken off of your property is just to pay your tax debts. Then, you won't have to worry about losing your property. However, if you are not able to pay off your debts, you may be able to have the liens removed by filing for bankruptcy.
The Effects of Chapter 7 On a Lien
If you file for Chapter 7 bankruptcy, you will have to sell most of your assets to pay for your bankruptcy and you will then receive a clean start. Property that is not very valuable might not be sold and you will be allowed to keep it. However, the assets that are sold to pay for your debts will no longer have a lien on them.
You Can Discharge Your Taxes
You may also be able to discharge the taxes. Then, you will not have to worry about liens. To be able to discharge the taxes, you will need to have filed tax returns for the last couple of periods. You will be able to discharge the personal liability for tax debts that are old enough as long as you have filed for your taxes.
After you have filed for Chapter 7 bankruptcy, you may still have taxes that you will still be required to pay. This can include taxes that you didn't file a return for and taxes that are relatively new. However, after you have discharged the bulk of your taxes, you will have an easier time paying your other taxes.
However, to be able to effectively discharge some of your tax debts, you will want to work closely with a bankruptcy attorney. By working with a professional, you will be able to increase the odds that you successfully discharge your debts.Share