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Bankruptcy Question

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DeeWill
New Contributor

Bankruptcy Question

I inherited a property that should have gone under foreclosure but the bank opted to put a lien on the property.  Can this lien be included in bankruptcy proceedings? Can a tax lien be included?

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ezdriver
Senior Contributor

Re: Bankruptcy Question

Liens that have been recorded at least 30 days [in Florda...may be different in your State] survives the bankruptcy process. A bankruptcy discharge will remove the bankruptcy filer's liability for the debt but it does not remove the lien from the property. The debt has to be settled and the lien vacated via court action by the debtor. Tax liens [eg: IRS] can be released so the property can be sold by the lender but that happens only if there is insufficient equity to pay the IRS debt. If the taxes are owed to municipal authorites, I believe that they must be satisfied by someone before the title can be transferred. I tried to answer based on your vague information.

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