What about State taxes?

State taxes are the same as a federal taxes, property taxes, anything like that, any governmental tax, debt, federal state, property tax from the county, all that could go in way in the bankruptcy. If it’s old enough now property tax is generally secured by the car that you’re paying a tax on. But if that’s an old tax from an old car that you don’t have anymore, it’s no longer secured because you don’t have the stuff. And so it goes away with the credit cards and everything else. Certain taxes will be filed as tax liens with the county. You may have a federal or state tax lien that makes the tax attached to stuff, and then you have to pay up to the value of that stuff. But generally speaking, if you have 30, $40,000 of tax debt, we can usually get that knocked down to just a couple of thousand dollars, for the stuff it was attached to. And the rest of it still goes away in the bankruptcy.


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