Can I Really Stop a Tax Foreclosure by Filing a Chapter 13 Bankruptcy?
Falling behind on property taxes can put you and your family at risk of foreclosure by your City or County Tax Collector. While delinquent property tax payments can be paid back, State and Local tax authorities often make this process complicated and expensive…
Why can’t I just pay back what I owe?
Good question… though I wish I had a better answer to offer.
Local governments across New York State have a reputation for charging massive penalties, fees, and interest rates. In a very short amount of time, small, unpaid property tax bills can easily double or triple. Plus, most cities and counties will not allow homeowners’ payment plans to last for more than two  years. Also, even if your Tax Collector’s Office is willing to enter a longer-term payment plan, bureaucratic red tape will often restrict them from doing so.
Most homeowners just want to pay back what they owe, keep their house, and move on with their lives… but their local government seems either unable or unwilling to help them.
How does Chapter 13 help with a foreclosure?
Filing for Chapter 13 Bankruptcy is the absolute best way to stop a tax foreclosure.
By filing a Chapter 13 Case, a homeowner will immediately stop a tax foreclosure in its tracks! Also, Chapter 13 allows you to select the length of your repayment plan (up to five  years) – two and a half times [2.5x] more time than you’d get by working directly with your tax collector.
As an extra added benefit, the Chapter 13 can also get rid of your other debts. This can prove to be a very useful benefit, especially when you have a lot of property taxes to pay back.
Believe it or not, under the right circumstances, an attorney familiar with Chapter 13 laws can even reverse a tax foreclosure sale!
There are not too many issues that a Chapter 13 Bankruptcy can’t solve, when it comes to property tax foreclosures.
Have additional questions about filing a Chapter 13 to stop a property tax foreclosure?
Call today at (518) 451-9388 or (914) 280-8592 to schedule your free consultation!