Legal Question in Bankruptcy in California

Does Automatic stay stop Tax Collector sale

I have filed a Chapter 7 BK and just received a notoce form the tax collector that my home will be sold for unpaid property taxes on July 1 if I don't make a huge payment by by June 30. I don't have the cash

Does the automatic stay apply to stop the sale/collection until discharge. I filled in Sept 2008 and the dischgarge is being held up because of an adversary action objecting to the discharge.

Can I stop the tax sale?

Somebody please answer ASAP


Asked on 6/16/09, 9:02 pm

2 Answers from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

Re: Does Automatic stay stop Tax Collector sale

Yes, but you might consider converting to a Chapter 13 to propose a repayment plan for the taxes if you want to keep the house. Chapter 7 will only delay the sale temporarily. Be sure to send a copy of the automatic stay to make sure the tax collector knows to stop the sale.

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Answered on 6/16/09, 9:16 pm
Shalem Shem-Tov

Re: Does Automatic stay stop Tax Collector sale

The previous response is correct. However, it assumes that you owed these taxes before you filed your BK. You did not mention when those taxes became due. If the taxes became due AFTER you filed the BK, then the automatic stay will not stop the sale.

A Chapter 13 may be able to give you time (3-5 years) to pay off those taxes.

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Answered on 6/17/09, 12:31 pm


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