Q: What are the effects on a Municipal tax lien, When property owner subsequent files for bankruptcy protection.
A: The lein stays attached to the property and continues to gather interest. If a foreclosure has been initiated, that will be stayed pending the bankruptcy. If chapter 13 is filed, then the lien can be paid off in the chapter 13 bankruptcy.
A: Liens are an "in rem" concept. There is no personal liability, even outside of bankruptcy. The lien must be paid to retain the property. Otherwise you can foreclose. While the bankruptcy is pending, you need stay relief to do so.
A: The property owner must redeem the tax certificate through the chapter 13 or the lien can be foreclosed on
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