Even if your tax debt is dischargeable, prior federal tax liens on personal property may still be a problem. Most tax liens cannot be discharged in bankruptcy, including federal tax liens. Filing for Chapter 7 may be able to eliminate your tax debts if they meet all of the prior stated requirements. However, if the Internal Revenue Service (IRS) recorded a lien on your property prior to your filing bankruptcy, that tax lien will remain. Tax liens that are not discharged will continue to be owed at the end of a Chapter 7 case or repaid in full as part of your payment plan in a Chapter 13 case.
