Property tax liens would survive the bankruptcy whether or not there was a claim.Since it is a priority liens it will be ahead of mortgage and other secondary liens such as Mechanic's liens or IRS liens.
Private buyers of property tax liens (ie. Tax Ease Liens) has also legal standing to initiate Foreclosure action. However certain counties implemented Tax Ease Liens to notify the city about any upcoming foreclosure action.
The question remains, who is monitoring the sky high lawyer fees that tax ease liens attaches to the tax liens.
"Although a secured creditor doesn’t need to file a proof of claim (Rule 3002(a)), “if a secured creditor wishes to participate and receive distributions in a Chapter 13 case, a proof of claim must be filed,” the court said.
Bankruptcy rule 3002(c) provides for a list of circumstances allowing for late-filed claims, but none of those was applicable in the case, the court said.
The result of the decision is that the tax lien-holder will have to wait until after the bankruptcy case concludes, at which point it can seek to enforce its rights under its tax lien."
This worked in the case of Robert and Melissa Herrig filed a Chapter 13 bankruptcy case on Sept. 23, 2016. Under limited circumstance, Bankruptcy can be an option to "postpone" a property tax lien collector at least for a short while.
