Are delinquent personal property taxes dischargeable in a chapter 7 bankruptcy case?

It depends on how old the property tax is. If the property tax is older than one year it will be dischargeable. §523(a)(1) lists the exceptions to discharge and refers to §507(a)(8) which describes a property tax as priority when it is last payable without penalty after one year before the date of filing. Property taxes are due at the beginning of each year, and can be paid without penalty until end of the year. That means property taxes for 2011 are due in 2011 without any penalty. One year after 2011 they can be discharged, this means any case filed in 2012 that lists personal property taxes won’t discharge these taxes. If you want to included property taxes from 2011, you would have to wait with filing of your bankruptcy until 2013.

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