If you own your home or any other real estate in Pennsylvania, your county, municipality and school district probably assess a real estate tax. For example, if you live in Harrisburg, you will be assessed a real estate tax by Dauphin County, the City of Harrisburg and Harrisburg School District. Each tax is calculated based on the assessed value of your real estate times the millage rate adopted by each taxing district. If you pay them when assessed, you are in good shape. When you get behind, for whatever reason, you could lose the real estate to a tax sale.
After promises to pay and payment plans do not work out, the county tax claim bureau will schedule the property for a tax sale. Bidders will be sought to cover the taxes due. Once a successful bidder is found, the tax claim bureau sells the real estate on your behalf to pay the outstanding taxes and you lose the real estate. Definitely something you want to avoid.
When all other efforts fail, taxpayers may utilize Chapter 13 of the Bankruptcy Code to save their real estate. After full and honest disclosure of your assets, debts, income and expenses, and other important information, you propose a payment plan to pay the taxes due over a 3 to 5 year period. And yes, our experienced attorneys can help you prepare these required documents. You can also clean up mortgage arrears, municipal claims (like water, sewer and trash), and other debts that have been bothering you. The filing of the bankruptcy stops the sale from taking place so you have the opportunity to take care of the taxes. If you are currently facing a tax sale or fear you may soon be, contact us. We give second chances on Second Street.