Can I Really Stop a Tax Foreclosure by Filing a Chapter 13 Bankruptcy?
Falling behind on property taxes can put you and your family at risk of foreclosure by your City or County Tax Collector. While delinquent property tax payments can be paid back, State and Local tax authorities often make this process complicated and expensive…
Why can’t I just pay back what I owe?That's a good question. First, local governments across New York State have a reputation for charging massive penalties, fees, and interest rates. In a very short amount of time, small, unpaid property tax bills can easily double or triple. Second, most cities and counties will not allow homeowners’ payment plans to last for more than two  years. Third, even if your Tax Collector’s Office is willing to enter a longer-term payment plan, bureaucratic red tape will often restrict them from doing so.
How does Chapter 13 help with a foreclosure?Filing for Chapter 13 Bankruptcy is the absolute best way to stop a tax foreclosure. By filing a Chapter 13 Case, a homeowner will immediately stop a tax foreclosure in its tracks! Also, Chapter 13 allows you to select the length of your repayment plan (up to five  years) – two and a half times [2.5x] more time than you’d get by working directly with your tax collector. Believe it or not, under the right circumstances, an attorney familiar with Chapter 13 laws can even reverse a tax foreclosure sale!
Can I afford to file a Chapter 13? What about all my other debts?This is where the value of Chapter 13 really begins to prove its mettle. Your Chapter 13 can also get rid of your other debts. In addition, you mat also be able to significantly reduce your vehicle loans - and even strip junior mortgage(s) from your house! If properly executed, the end result will yield an affordable payment that provides massive and immediate debt relief... and keeps you in your home. This can prove to be a very useful benefit, especially when you have a lot of property taxes to pay back.
Still have additional questions about Property Taxes and Chapter 13?At the end of the day, when it comes to almost any kind of debt, Chapter 13 Bankruptcy can provide an affordable resolution - particularly when it comes to property tax problems. With this said, Chapter 13 is a particularly complicated area within the Bankruptcy Code. Thus, if you have any additional questions, you should definitely consult with a bankruptcy attorney before making any final decisions about your financial future.