I can still maintain the property?

So, in that scenario, if I have a piece of land that is worth $50,000, and I have a lien against it, a tax lien, and that lien was $10,000, what you are saying is that $10,000 potentially can be knocked down to something less, and I can still maintain the property?

So if you have tax debt that is secured by a tax lien, it has to be paid back to the extent that it’s secured by value in property. So let’s say that you have, your home, your home is worth $200,000 and you have $150,000 mortgage against it. That means you have $50,000 worth of equity or the amount left after the mortgage. If you have a $10,000 tax lien, then that 50,000 more than covers the tax lien. And that 10,000 would stay as a lien against your property until the taxes paid. So depending on the type of bankruptcy you look at, if you’re in a payment plan, you may pay that back through the court so that you can get rid of it in a couple of years without any interest and have it all paid. Or it may just sit on the books to be paid later on when you sell your home. Conversely, if you have a $150,000 house with a $200,000 mortgage it’s underwater, there is no equity. And that whole $10,000 tax bill would go away, the same as the credit cards and medical bills.

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