Expert: Terry Leeders - 5/21/2009

Question
My husband and I are about to file chapter 13 bankruptcy. I understand the garnishment for the houses-we have 2-the cars and our home equity loan. Here is my question. Are property taxes included in the garnishment or are we responsible for them on our own. We rent our second house out for the payment of a loan we have on it. The people living there are involved in a land lease and pay the taxes as well. Now the bankruptcy court is going to take the money to cover this home loan, so our tenants will pay us directly now. I was wondering if I need to tack on the extra money a month for taxes or does the bankruptcy court not care about that?
Thanks for your help.

Answer
You can set up your plan to pay back due property taxes thru the plan. If they are escrowed in, and you pay your mortgage thru the plan (current monthly payment) then they will be included too.  If you have to pay your own monthly RE taxes (or semi-annually) directly, you will continue to pay them directly.