Unpaid property taxes that
have not been sold are properly paid through the plan. It is important the county receive notice of
the filing of the bankruptcy case so that unpaid taxes will be held out of
sale.
There is some debate concerning proper treatment of a tax purchaser in Chapter 13.
Some hold that sold taxes cannot be paid
through the plan, that there is no debtor-creditor relationship between the
homeowner and tax buyer.
Others hold that the tax buyer is a creditor with a
claim in the property owner’s bankruptcy and is properly paid through the plan
as a secured creditor.
Judge Goldgar ruled that a tax purchaser is indeed a
“creditor” with a “claim” in the bankruptcy: In
re Alonzo and Joann Commings
If sold taxes will be redeemed directly, the plan
must detail how and when it will occur in section G of the plan. If the debtor budgets for this on schedule J,
the plan payment must increase upon redemption.
Generally, the debtor/homeowner must redeem sold
taxes with certified funds within 30 months of the date of the first sale.
Real Estate taxes should be listed on schedule D and
provided for in section E 3 of the plan.
Sold taxes to be paid through the plan would be
listed on schedule D with notice to the county and the tax buyer and paid
through E 3.
Verify the amount with the
Our office has contacted the
Click on the links below for details specific to each
county. Each link includes their remit
to address, a contact name and phone number and link to their web site.
DuPage
County Real Estate Taxes Kane
County Real Estate Taxes