Tax Liens and Bankruptcy in Minnesota

If you have a lot of tax debt and cannot find a way out bankruptcy may be able to help. If you have tax debt it is important to talk to a bankruptcy attorney who is experienced in dealing with tax debt, otherwise you could end up filing the wrong type of bankruptcy, or owe tax debt that could be dischargeable. One of the most common problems when filing for bankruptcy, is that clients often do not realize that they have tax liens on their property. If you have a tax lien and you file a chapter 7 bankruptcy, that is not discharged by the chapter 7 bankruptcy. If the IRS files a tax lien in Minnesota they will have a lien on all of your personal property. This lien survives the bankruptcy, meaning you will need to do an offer in compromise with the IRS after the bankruptcy filing, to settle the remaining tax debt. For more information on taxes in a Minnesota bankruptcy give our office a call at 952-294-0144.