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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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Hello, What happens if we do not pay our property taxes while

This answer was rated:

Hello,
What happens if we do not pay our property taxes while we are in chapter 13 bankruptcy?
I ask this because we have as of yet paid them and they are delinquent.There isn't an
escrow account on our home loans.

Hi JACustomer,

Your property taxes should have been included in your housing expenses, along with your mortgage. Were they included in your expenses?

Customer: replied 5 years ago.
I think so, I am not sure, do you mean in our monthly payment to the trustee?
So sorry to hear of this dilemma. If my answer is not clear to you, please ask me for clarification by using the reply button.

If you do not pay your property taxes while in your chapter 13 bankruptcy, the mortgage holder may move for relief from automatic stay in order to commence foreclosure proceedings. This is true regardless of the fact that the mortgage does not escrow for taxes.


Please use the REPLY button if you have any questions concerning my answer. Otherwise please click ACCEPT so that I am paid by the site for answering.
Customer: replied 5 years ago.
are we still liable for the property taxes?

Yes. You are still liable for the property taxes on the property that you are keeping. If you do not pay the property taxes eventually the mortgage holder will ask the bankruptcy court for permission to foreclose
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience: Bankruptcy Lawyer. Experienced.
Ellen and 2 other Bankruptcy Law Specialists are ready to help you
Customer: replied 5 years ago.

We plan on walking away from the house,Can the lender sue us for the taxes that are owed on the house and property?

If the bank has the stay lifted can they charge us for their expense that it cost them to have the stay lifted? Is yes how much does it cost a lender or bank to have the stay lifted in Arizona?

The bankruptcy discharge will discharge your liability to the lender. The property taxes are in a first lien position on the property ahead of the mortgage and therefore they are paid first in a foreclosure sale. The end result is that your bankruptcy discharge would erase your liability to the lender
Customer: replied 5 years ago.
When the lender asks the court to lift the stay is the stay only lifted on the house or the entire bankruptcy case?
just the house
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience: Bankruptcy Lawyer. Experienced.
Ellen and 2 other Bankruptcy Law Specialists are ready to help you