What happens to state tax liens after a bankruptcy discharge?

Answer by  flamiss22 (5081)

Nothing. Money owed to the government, state or local have to be satisfied regardless if you file bankruptcy or not.

Answer by  tamarawilhite (17883)

Tax debt, including state tax liens, is not bankruptable unless the state gives you permission to discharge the debt under extreme circumstances like complete disability. Even if you are disabled, the state tax liens must be listed in the bankruptcy filing to be discharged. If these circumstances are not met, you still owe the debt.

Answer by  Travis404607 (3916)

This depends on what the court decides in the bankruptcy hearing. This also depends on the type of bankruptcy filed for. Usually, the liens remain in effect after a bankruptcy is discharged.

Answer by  alicia47 (227)

State tax liens are not eligible to be included in a bankruptcy. They would not be able to collect during a bankruptcy but once the bankruptcy is over they can.

Answer by  Mary (2095)

If they were included in the bankruptcy filing then they would be discharged with the closure of the bankruptcy case.