Can you discharge tax liens in bankruptcy?
The short answer is no. If you file a Chapter 7 bankruptcy, you can discharge your personal obligation to pay a tax debt if the taxes in question meet certain criteria. However, tax liens are secured against your property and so will remain attached to your property even if you discharge your personal obligation to pay the taxes themselves.If you file a Chapter 13 bankruptcy, you still can’t discharge a tax lien, but you may be able to pay it off during the life of your payment plan. You may also be able to pay it off with 0% interest. In addition, you may be able to reduce the amount of the tax lien to the value of your current assets.