FRANK D. TAFF, J.D., Attorney at Law
|Posted on July 27, 2012 at 9:28 AM|
Bankruptcy will not wipe out prior recorded tax liens. A Chapter 7 bankruptcy will wipe out your personal obligation to pay the debt, and prevent the IRS from going after your bank account or wages, but if the IRS recorded a tax lien on your property before you file for bankruptcy, the lien will remain on the property. In effect, this means you'll have to pay off the tax lien in order to sell the property. Of course, if you rent and own no real estate, a federal tax lien may not be a concern.