Trying now to get clear on "classification" of tax debt if house sale for some reason is not completed in short sale (i.e. lender/IRS approvals take too long and buyer exits) and then a foreclosure is filed. I understand that in a BR filing, IRS tax debt (personal not payroll taxes) can potentially be discharged, but that a federal tax tax lien on property is not dischargeable. However, if such should happen that short sale falls through, and house is sold in a foreclosure and IRS lien is removed from property to allow the sale to proceed -- and whereby all lenders are satisfied, and some but not all of tax debt is also paid -- then at that time, with lien on property removed would the remaining amount of tax debt due then be approve-able for potential discharge in a filing for BR, if such filing becomes necessary?
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