Can Personal Property Taxes Be Discharged in Bankruptcy? – San Diego Bankruptcy Attorney

In the past, we have posted blog articles on the dischargeability of income taxes in bankruptcy.  A less common inquiry we receive here at the VC Law Group is whether personal property taxes are dischargeable in Chapter 7 bankruptcy.

First off, it is important to recognize that the analysis of whether personal property taxes are dischargeable in bankruptcy is quite different from the analysis done for income taxes.  In fact, it is much easier to discharge personal property taxes.  There are two general requirements to discharge personal property taxes:

 

  1. The personal property taxes must have been assessed prior to the date of filing bankruptcy; and
  2. The last date that the personal property taxes were payable without penalty was more than one year prior to the date of filing bankruptcy.

This analysis is codified in the Bankruptcy Code at 11 U.S.C. §507(a)(8)(B).

If you are thinking of filing Chapter 7 bankruptcy and are hoping to discharge your personal property tax liabilities through this process, use the above requirements in order to help determine whether those taxes may be discharged.  For more information, please contact us at the VC Law Group via telephone at (858) 519-7333 or email at info@thevclawgroup.com.