It is very important to know if the IRS has secured tax liens for past years of income tax you owe. Your Metro Detroit bankruptcy attorney needs this information to best advise you on whether to file a Chapter 7 or Chapter 13 and how the taxes will be treated. Whether or not the IRS has placed any secured liens on your real or personal property affects how the IRS will be treated in a bankruptcy. A secured tax lien means the tax debt cannot be discharged. In a Chapter 13 payment plan it means the IRS is entitled to full repayment of that income tax and may be allowed to collect some interest.

The presence of a secured tax lien is also very important for a Chapter 7 bankruptcy. The tax debt secured by a tax lien cannot be discharged in a chapter 7. A tax lien is a secured lien against your personal and real property which may allow a chapter 7 trustee to administer your property, despite your exemptions, to pay off the tax lien. This means you could lose a car or other valuable asset you thought you had fully exempted because the Trustee can sell it off to pay the secured tax debt.

Schedule a Free Consultation With a Detroit Bankruptcy Attorney

It is critical you consult with an experienced Michigan bankruptcy attorney and discuss all income tax debt owed and whether there are any secured liens, so that your attorney has all the information to advise you appropriately.

You’ll want an experienced Metro Detroit bankruptcy attorney on your side. Learn more about Michigan Board Certified Bankruptcy attorney John Steinberger and The Steinberger Promise. Your consultation is free – always. Call us at (866) 690-2140 or (248) 559-4055.