Tax Liens After Bankruptcy
Tax liens and other types of liens do remain after a bankruptcy discharge; however, they do not attach to any property acquired after your bankruptcy discharge.
Getting Rid of Your Tax Liens After Bankruptcy
Also, you may be able to have a tax lien release or removed if the following applies:
- The tax lien was filed too soon or the filing of the tax lien failed to follow IRS procedures.
- You entered into an installment agreement to pay the tax debt once your received the notice of a tax lien.
- If the tax debt was not discharged in bankruptcy and withdrawal of the tax lien will enable you to pay the tax debt quicker.
- A Taxpayer Advocate has determined that the withdrawal of the tax lien would be in your best interest or the IRS has determined that the withdrawal of the tax lien will be in the best interest of the government.
- You had already paid the tax debt owed before the IRS filed the lien.
- The tax lien was filed while you were in bankruptcy and were protected by the automatic stay .
- The statue of limitations for collecting the tax debt expired at the time the lien was filed.
- You did not have an opportunity to dispute the assessed tax liability.
It’s important to remember that after 10 years a tax lien expires unless it is renewed by the IRS, in the case of a tax lien. Also, the IRS may be willing to release a tax lien if you are trying to sell your home.
Have More Questions About Tax Liens and Bankruptcy?
If you have any questions about tax liens and bankruptcy we are always willing to help. Submit your questions here and or set up a free consultation and we will get back to you.