Bankruptcy Filing By Property Taxpayer And Impact On Property Taxes
When a taxpayer files bankruptcy and lists the County Collector as a creditor, the Collector receives a notice of the bankruptcy filing from the United States Bankruptcy Court. The following apply to a taxpayer’s property when he/she has filed bankruptcy.
* Bankruptcy usually impacts property taxes assessed at the time the taxpayer files bankruptcy; i.e., tax liability is assessed as of January 1 although bills are not created and payable until November.
* The collector may file a claim for any real estate taxes, personal property taxes and/or special assessments due or assessed at the time the bankruptcy was filed.
* Property taxes are generally classified as priority claims and are normally not discharged by the Bankruptcy Court.
* To renew or purchase a license plate when a taxpayer has filed bankruptcy and personal property taxes are not paid, the taxpayer may obtain a special form from the Collector, with proof of bankruptcy filing. This special form will be accepted by the Department of Revenue in lieu of a personal property tax receipt, although it does not remove the liability of payment at a later date.
For answers to any questions concerning bankruptcy filing relating to a property tax claim, you may call the Collector’s office at 844-277-6555.