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Im filling out chapter 7 forms and wonder if I list a tax lien on schedule D and E if the lien is not secured by my home?

Fresno, CA |

Im filling out chapter 7 form schedule D in which I listed a federal income tax lien for 15K on my home. The home has no equity to cover the the 15K, so would I list the tax lien again on shedule E...creditors holding unsecured priority claims?

Thank You

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Attorney answers 3

Best Answer

In most states a federal tax lien attaches to real estate upon filing whether or not there is equity in the real estate to pay it. That would suggest scheduling the tax lien on bankruptcy Schedule D. The lien may later become a priority issue between your secured creditors.

But having said this, you should not be doing this yourself without professional help. I must agree with my colleague here. There is too much at stake in your situation to guess or speculate. You should meet and confer with a qualified CA bankruptcy attorney immediately.

Good luck.

This answer is provided for information purposes only. It should not be relied upon as legal advice which can only be offered to clients in an office consultation setting when all the facts and circumstances can be fully considered and reviewed.


You are making a terrible mistake filing bankruptcy without an attorney if you owe taxes and have a tax lien. That decision could cost you thousands of dollars -- much more than an attorney would cost.



One more question in regards to this response. The irs can still take my home even though there is no equity and i have no assets and have currently worked out a payment plan with them? Does that mean they get the home from the lender and sell it anyway?


First, I am not sure you understand tax liens and it is not clear there is not a lien on your home.

Based on the first issue, you need an attorney.

Too much is at risk.

Please contact me directly with document for a free 30 minute consultation to get more concrete advice. This is not legal advice. I don't have enough information to give actual legal advice. I can only take the limited information presented and provide a framework to know how your situation may turn out. I may have questions that bring up issues you did not think were important but make a big difference.