Tax Liens and Exemptions on real property in Chapter 7
Posted: Tue Jan 30, 2018 7:02 pm
Read 724 and 726 of the Code
Sent from my iPhone
On Jan 30, 2018, at 6:25 PM, tuanl@stevelopezlaw.com [cdcbaa] wrote:
Dear List,
I have a PC that owns a mobile home with a little less than $100k in equity. They have a little more than $50k of that in two tax liens (one FTB and one IRS). Both liens were recorded with the county and perfected.
I have read on past posts that the trustee could still sell the property despite the exemptions since the IRS liens take priority over the homestead exemptions. The debtor is entitled to a $100k homestead so my analysis would be that they should be safe. However, I read on previous posts that the trustee could take the position that the bank is paid first, then the trustee second, with the tax third, then the debtor's exemption.
After reading that old post it has made me pause. Is this mobile home likely to be sold by the trustee in a Chapter 7 with the debtor getting nothing? If so, would a Chapter 13 be better? Any insight would be greatly appreciated.
Thanks,
Tuan Le
Read 724 and 726 of the Code
Sent from my iPhone
On Jan 30, 2018, at 6:25 PM, tuanl@stevelopezlaw.com [cdcbaa] <cdcbaa@yahoogroups.com> wrote:
Dear List,
I have a PC that owns a mobile home with a little less than $100k in equity. They have a little more than $50k of that in two tax liens (one FTB and one IRS). Both liens were recorded with the county and perfected.
I have read on past posts that the trustee could still sell the property despite the exemptions since the IRS liens take priority over the homestead exemptions. The debtor is entitled to a $100k homestead so my analysis would be that they should be safe. However,
I read on previous posts that the trustee could take the position that the bank is paid first, then the trustee second, with the tax third, then the debtor's exemption.
After reading that old post it has made me pause. Is this mobile home likely to be sold by the trustee in a Chapter 7 with the debtor getting nothing? If so, would a Chapter 13 be better? Any insight would be greatly appreciated.
Thanks,
Tuan Le
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