BANKRUPTCY AND TAXES
When you file a bankruptcy the dischargeability of property taxes depends on whether you are filing a chapter 13 or a chapter 7 Oklahoma bankruptcy.
If you are filing a chapter 7 bankruptcy and you are not keeping the property that the property tax was assed to you can discharge the amount of tax that was owed at the time of discharge and the property tax you are discharging must be more then one year old. If on the other-hand you are reaffirming the property that the tax is assessed on you must pay the tax as the property tax is secured by the property that you are keeping.
In a chapter 13 bankruptcy property tax and its dischargability will once again depend on if you reaffirm the property or send it back to the creditor with the deficiency balance being treated as unsecured. If you reaffirm the property you will have to pay the tax. The arrearage owed may be paid out through the plan. If on the other hand you do not keep the property the deficiency balance will be paid back through the plan per the percentage of your plan requires you to repay.
Fro a free consultation regarding Oklahoma Bankruptcy law call 918-637-1546 or email today