Tax Debt

Tax Debt In Philadelphia Via Bankruptcy

If you are behind on monthly bills such as mortgage payments and vehicle payments you are most likely behind on peripheral bills such as property taxes. In the Commonwealth of Pennsylvania most property taxes are part of your monthly mortgage payment. In some cases, in an effort to keep your monthly costs as low as possible, you may opt to not have them escrowed as part of your monthly mortgage payment. In these cases you can fall behind on your property taxes. Doing so can cause you financial trouble as state property taxes have to be paid. You may have a few options regarding how to tackle your property tax arrears in Pennsylvania.

For more information on what those options are it is a wise move to speak with a Philadelphia Bankruptcy Lawyer.

Property Tax Debt Relief Options In PA

There are 2 bankruptcy options for individuals and families in the Philadelphia, Pennsylvania area. Each can help you with your property tax debt and the one that suits you best will depend on your goals and what you are trying to achieve. If your goal is to keep your house, and ideally walk away from other types of debt, you can file a Chapter 7 bankruptcy. However, due to the fact that you want to maintain your home the property tax arrears cannot be discharged in the bankruptcy. You will have to pay them in order to keep your home. If you do not want to keep your home then the property tax debt, as well as your mortgage, can all be discharged in the Chapter 7 bankruptcy.

Another option you have is to file a Chapter 13 bankruptcy. A Chapter 13 is essentially a debt consolidation plan that not everyone qualifies for. A Chapter 13 allows you to keep your personal property and personal possessions. Although the property taxes, along with other debt, have to be repaid through the Chapter 13 repayment plan as outlined by the bankruptcy trustee. Depending on how much debt you have you will have up to 60 months to repay all debts that are part of the plan.

How A Philadelphia Bankruptcy Lawyer Can Help You

If you are struggling financially, no matter what the reason, do not hesitate to contact the Philadelphia Bankruptcy Lawyers at Jensen Bagnato, P.C. for a free consultation. Mr. Jensen and his staff understand the emotional and financial strain you are facing. They will do their best to help you, and your family, so that you can get a fresh start financially.