How Can a Chapter 13 Bankruptcy Help Me With My Real Estate Taxes?

If you are behind on your real property taxes and in danger of forfeiting your house or on the brink of foreclosure, filing a Chapter 13 Bankruptcy may be the right solution for you.

The Automatic Stay provisions of §362 will stop the foreclosure and the ability to cure any arrearage over the course of your Chapter 13 Plan will allow you to keep your house.

Under Michigan law, there is a 2 year limit on being delinquent in paying your taxes. A tax is considered delinquent if it remains unpaid for one year after it is due. For example, a tax billed by your local municipality in 2012 will be turned over to the County Treasurer on March 1, 2013. Then, one year later – the 2012 taxes that remain unpaid as of March 1, 2014 will be in forfeiture. Once your property is place in forfeiture, you still have one year before it will be foreclosed; Your 2012 property taxes will be foreclosed in March of 2015.

Once foreclosed, you have 2 choices: You can either let the property go to public auction; or, you have 31 days to redeem the property.

The key is to not let your taxes go in to foreclosure. Once they are foreclosed – you will be force to redeem the property – you will have to come up with the entire balance due for the tax year in issue. If you don’t come up with that lump sum – you lose the property.

The solution is easy. You file a Chapter 13 petition before the foreclosure date. The Automatic Stay prevents the foreclosure from taking place. And, more importantly, you can cure the arrearage of all back property taxes over the term of your plan – 3 to 5 years. The plan will also allow you to stay current on your property taxes as they accrue. So, through Chapter 13 you can save your house and get back on track,

Once again, understanding how the provisions of Chapter 13 Bankruptcy work reveals just how powerful filing a Chapter 13 can be. As I have always said: Chapter 13 Bankruptcy is the most powerful tool in the free world.

e Taxes?

If you are behind on your real property taxes and in danger of forfeiting your house or on the brink of foreclosure, filing a Chapter 13 Bankruptcy may be the right solution for you.

The Automatic Stay provisions of §362 will stop the foreclosure and the ability to cure any arrearage over the course of your Chapter 13 Plan will allow you to keep your house.

Under Michigan law, there is a 2 year limit on being delinquent in paying your taxes. A tax is considered delinquent if it remains unpaid for one year after it is due. For example, a tax billed by your local municipality in 2012 will be turned over to the County Treasurer on March 1, 2013. Then, one year later – the 2012 taxes that remain unpaid as of March 1, 2014 will be in forfeiture. Once your property is place in forfeiture, you still have one year before it will be foreclosed; Your 2012 property taxes will be foreclosed in March of 2015.

Once foreclosed, you have 2 choices: You can either let the property go to public auction; or, you have 31 days to redeem the property.

The key is to not let your taxes go in to foreclosure. Once they are foreclosed – you will be force to redeem the property – you will have to come up with the entire balance due for the tax year in issue. If you don’t come up with that lump sum – you lose the property.

The solution is easy. You file a Chapter 13 petition before the foreclosure date. The Automatic Stay prevents the foreclosure from taking place. And, more importantly, you can cure the arrearage of all back property taxes over the term of your plan – 3 to 5 years. The plan will also allow you to stay current on your property taxes as they accrue. So, through Chapter 13 you can save your house and get back on track,

Once again, understanding how the provisions of Chapter 13 Bankruptcy work reveals just how powerful filing a Chapter 13 can be. As I have always said: Chapter 13 Bankruptcy is the most powerful tool in the free world.

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