About Robert Vitt Expertise I am able to answer general questions regarding Chapter 7 and Chapter 13 bankruptcy cases. I have particular experience in personal (i.e., non-business) bankruptcies. I am unable to answer any questions pertaining to Chapter 11 bankruptcies.
Experience www.bankruptcy-ie.com
I am admitted to practice in the Central District of California and currently run my own law firm which specializes in bankruptcy.
Organizations San Bernardino County Bar Association, California State Bar
Education/Credentials Bachelor of Arts, Philosophy
Master of Business Administration
Juris Doctor
Master of Arts, Philosophy
Past/Present Clients I have had a variety of clients throughout my career. However, my immediate past clients have been predominantly individuals filing for debt discharge under Chapter 7.
Bankruptcy Law - Does Automatic stay stop Tax Collector sale
Expert: Robert Vitt - 6/17/2009
Question I have filed a Chapter 7 BK and just received a notice from the tax collector that my home will be sold for unpaid property taxes on July 1 if I don't make a huge payment by June 30. I don't have the cash
Does the automatic stay apply to stop the sale/collection until discharge. I filled in Sept 2008 and the discharge is being held up because of an adversary action objecting to the discharge.
Can I stop the tax sale?
Please answer ASAP
Answer Jay,
Unfortunately I cannot provide legal advice in this forum, so the following are general rules intended for general instances and should not be relied upon in informing or making any decision with regard to your property. No attorney-client relationship is formed by my posting this answer.
However, I am of course willing to help and give you the general rules of law. Bankruptcy typically stops the property tax forfeiture/foreclosure process, although interest will continue to accrue.
Usually divorce and child support payments are not halted by the automatic stay, IRS tax proceedings (and some other types of tax proceedings), and pension loans.
Some of the outcome may depend upon whether you listed these taxes in your schedule of debts. If you did not, then the state has an argument that the automatic stay should not apply. If you have, then the state *may* have to file a motion for relief from automatic stay before they move forward with a foreclosure.
I say *may* because some of this answer may lie in your particular jurisdiction. For instance, see In re Howard, --- B.R. ----, 2008 WL 2782652 (Bankr.N.D.Ga. Jul 07, 2008) (NO. A06-61345-PWB) which contains a narrow holding that a tax sale (under a chapter 13) should be held to the automatic stay.
Given the harsh and Draconian remedy available to the state to foreclose, I suggest that you consult with a bankruptcy attorney in your jurisdiction without delay.
