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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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**MA state specific** if a home has an MA tax lien and the

Resolved Question:

**MA state specific**

if a home has an MA tax lien and the owners file bankruptcy (chapter 7), do the homeowners still need to submit a release of lien from the IRS, or would the bankruptcy release the owners from the debt obligationi but there would still be a lien against the home's title?

What about a bankruptcy with an IRS lien?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 5 years ago.
Hi JACustomer,
Expert:  cfortunato replied 5 years ago.
Hi JACustomer,
For either a MA tax lien or an IRS tax lien, either of which has already been attached to your home, it is necessary to file a separate "522(f)" motion with the Bankrutpcy court while your Bankruptcy is in progress.
If this motion is not filed, the debt can be discharged, but the lien will remain on your property - similar to a mortgage.

I think this is what you wanted to know. If not, please let me know.
Thank you.
Customer: replied 5 years ago.
I've heard that it's not that easy to walk away from debt, and that there are certain conditions may need to be met, especially where the IRS is concerned, before debt can be discharged (along with release of lien). Is this the case, and if so, what needs to get done to discharge the debt?
Expert:  cfortunato replied 5 years ago.
I answered your question based on the assumption that your tax debt was dischargeable.
To determine whether or not your tax debt is dischargeable, please answer the following:
1) What type of tax debt is owed to MA and to the IRS?
2) For what tax years are the tax debts owed?
Customer: replied 5 years ago.
1. income tax
2. 2004-2007 tax years
Expert:  cfortunato replied 5 years ago.
Last questions:
1) Were the tax returns for both MA and the IRS filed on time?
2) If not, when were those tax returns filed?
Customer: replied 5 years ago.
1. yes
2. n/a
Expert:  cfortunato replied 5 years ago.
Given the information you provided, the liability for those taxes can be discharged in a Bankruptcy - because the returns for those years were due (April 15, 2008 for the latest one - assuming you did not file an extension) more than 3 years ago, and the returns were filed more than 2 years ago. Bankruptcy Stat. 523(1).
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