"stripping" tax liens in Ch. 13
Posted: Thu Mar 17, 2005 5:07 pm
Thanks, Brian. We are in accord 100%.
----- Original Message -----
To: cdcbaa@yahoogroups.com
Sent: Thursday, March 17, 2005 5:03 PM
Subject: Re: [cdcbaa] "stripping" tax liens in Ch. 13
Whatever a "quicksale" value is, it certainly is not what the Court is going to be using to determine the extent of the liens of the IRS or FTB. I would have the client get a full appraisal before filing so you know basically what the plan will look like and whether the debtor will be able to make the plan payments if you prevail on issue 1 below.
Re 1: The secured portion must be paid through the plan though class 3 (rub is going to be determining the secured portion. The IRS and FTB have consistently filed proofs of claim asserting a secured claim for the full amounts owing for the tax years for which they have a lien. It will be up to you to object to the proof of claim because it is deemed allowed unless objected to (502(a)). Hence, the appraisal ~ it's the only admissible expert evidence you will have.
Re 2: The homestead has absolutely nothing to do with determining the extent of an IRS or FTB liens under 506. Clearly, 522(f) won't apply because they are not judicial liens.
----- Original Message -----
To: cdcbaa@yahoogroups.com
Sent: Thursday, March 17, 2005 4:43 PM
Subject: [cdcbaa] "stripping" tax liens in Ch. 13
Client is insisting a couple things that I didn't think were possible, so I thought I'd check with the group:
Client owes money to IRS and State tax board. Both have liens against his resdiential al property. If we use a "quick sale" value for the house in Ch. 13 (which client says is appropriate and I say is not), then part of the IRS lien would be undersecured.
1. Client says you should be able to abate that portion of the lien and only pay out the "fully secured" amount through the Plan. Is this possible under a 506 Motion?
2. Is the homestead exemption factored into the analysis in #1 above? Meaning, when determining whether the lien is undersecured, is debtor's homestead exemption added in ABOVE the tax liens? I always heard that taxes trumped the homestead exemption.
Thanks for any input...
***********************************************
Mark J. Markus
Law Office of Mark J. Markus
11684 Ventura Blvd. PMB #403
Studio City, CA 91604-2652
(818)509-1173
(818)509-1460 (fax)
e-mail: bklawr@bklaw.com
web: http://www.bklaw.com/
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Thanks, Brian. We are in accord 100%.
----- Original Message -----
From:
Brian D. Wirsching
To: cdcbaa@yahoogroups.com
Sent: Thursday, March 17, 2005 5:03
PM
Subject: Re: [cdcbaa] "stripping" tax
liens in Ch. 13
Whatever a "quicksale" value is, it certainly is
not what the Court is going to be using to determine the extent of the liens
of the IRS or FTB. I would have the client get a full appraisal before
filing so you know basically what the plan will look like and whether the
debtor will be able to make the plan payments if you prevail on issue 1
below.
Re 1: The secured portion must be
paid through the plan though class 3 (1325(a)(5)) with the unsecured portion
being paid through class 5. The rub is going to be determining the secured portion. The IRS and FTB have consistently
filed proofs of claim asserting a secured claim for the full amounts owing for the tax years for which they have a lien. It will be up to you
to object to the proof of claim because it is deemed allowed unless objected
to (502(a)). Hence, the appraisal ~ it's the only admissible expert
evidence you will have.
Re 2: The homestead has absolutely nothing
to do with determining the extent of an IRS or FTB liens under 506.
Clearly, 522(f) won't apply because they are not judicial liens.
----- Original Message -----
From:
Mark J. Markus
To: cdcbaa@yahoogroups.com
Sent: Thursday, March 17, 2005 4:43
PM
Subject: [cdcbaa] "stripping" tax liens
in Ch. 13
Client is insisting a couple things that I
didn't think were possible, so I thought I'd check with the
group:
Client owes money to IRS and State tax board. Both have liens against his resdiential al property. If
we use a "quick sale" value for the house in Ch. 13 (which client says is
appropriate and I say is not), then part of the IRS lien would be
undersecured.
1. Client says you should be able to
abate that portion of the lien and only pay out the "fully secured" amount
through the Plan. Is this possible under a 506 Motion?
2. Is the homestead exemption factored
into the analysis in #1 above? Meaning, when determining whether the
lien is undersecured, is debtor's homestead exemption added in ABOVE the tax
liens? I always heard that taxes trumped the homestead
exemption.
Thanks for any input...
***********************************************Mark J.
MarkusLaw Office of Mark J. Markus11684 Ventura Blvd. PMB
#403Studio City, CA 91604-2652(818)509-1173(818)509-1460
(fax)e-mail: bklawr@bklaw.comweb:
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