Motion to have federal tax lien removed after Chapter 7 bankruptcy?

Asked over 2 years ago - Los Angeles, CA

1) If your tax liability gets discharged in a chapter 7 bankruptcy what are the criteria that the IRS uses to determine whether to remove the federal tax lien?
2) If the IRS refuses to remove the federal tax lien what are the criteria that courts use to determine whether to remove the federal tax lien?

Additional information

Specifically to question 2, what does it mean to show that the lien is impairing your ability to claim an exemption?

Attorney answers (4)

  1. John Addison Vos

    Contributor Level 15

    7

    Lawyers agree

    Best Answer
    chosen by asker

    Answered . There is no motion in the bky court process to remove an IRS lien. The IRS lien is a statutory lien.
    The bky process to remove a lien is for judicial liens, not statutory.
    However, the IRS internally does remove liens. Just ask. If the remaining assets subject to the lien are of inconsequential value, then can remove the lien. Also, keep in mind that if the tax itself is discharged, then the lien will just expire after time. After 30 years in practice, often this is what we do - just let the liens die a natural death.

    This is general legal information, not intended to apply to your specific case. And I may not be licensed to... more
  2. Christopher Michael Larson

    Pro

    Contributor Level 19

    9

    Lawyers agree

    Answered . You can discharge the lien if you no longer owe anything. This is one of the things that allows for a release of lien. The IRS will generally remove a lien automatically after the liability is paid in full, but it can take a few months to happen. As the previous attorney stated, there is a process to remove the lien if they have dropped the ball.

    However, if any taxes remain undischarged, they can keep the lien in effect until the liability is paid in full.

    Christopher Larson
    Insight Law
    www.insightlawfirm.com

  3. Stephen M Trezza

    Pro

    Contributor Level 17

    7

    Lawyers agree

    Answered . The IRS has a procedure to obtain a lien release post discharge. Go to IRS.gov to find the forms and procedure. Go to the IRS directly you dont nerd to ho to the bankruptcy court.

  4. Michael J Corbin

    Contributor Level 20

    5

    Lawyers agree

    Answered . While I agree with the above in that they properly answered HOW to get a lien removed, I'm curious why you believe your tax debt was discharged in a Chap. 7 bankruptcy? Unless the debt is VERY old, it wasn't discharged, so the lien is still valid post-discharge since you still owe the debt.

    This answer is not to be considered a response to a specific legal issue in a specific jurisdiction - it is to be... more

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.

 

Ask now

27,455 answers this week

2,960 attorneys answering

Ask a Lawyer

Get answers from top-rated lawyers.

  • It's FREE
  • It's easy
  • It's anonymous

27,455 answers this week

2,960 attorneys answering

Legal Dictionary

Don't speak legalese? We define thousands of terms in plain English.

Browse our legal dictionary