After filing Chapter 7 bankruptcy in March 2023 and receiving a discharge by June 2023, I was informed that my Virginia county personal property taxes, which were included in the filing, are still blocking my DMV registration renewal. I understood all disclosed debts would be addressed in the bankruptcy. Can anyone explain why these taxes remain an issue?
Unfortunately, property taxes are often non-dischargeable in bankruptcy, especially if they were due within the year before you filed. It’s frustrating, but the county can still require payment for these specific tax obligations.
@Suki
I see. So even though it was disclosed in the bankruptcy, it might not be covered?
Wynn said:
@Suki
I see. So even though it was disclosed in the bankruptcy, it might not be covered?
Correct. Chapter 7 discharge covers many debts, but certain taxes often don’t qualify. You may need to reach out to the county directly for payment options.
Your best bet is to contact the county’s tax office. Explain the discharge and check if their records show the DMV block as valid. If they confirm it’s non-dischargeable, they might offer a payment plan.
@Cleo
Good idea! I’ll reach out to see if there was a system error or if this is just how tax debts work.
Wynn said:
@Cleo
Good idea! I’ll reach out to see if there was a system error or if this is just how tax debts work.
Exactly. Clarifying directly with them is key; there could be a simple fix or a payment solution available.
Virginia is strict about personal property taxes, so even with bankruptcy, certain recent taxes might not be dischargeable. This is common for property taxes.
Rory said:
Virginia is strict about personal property taxes, so even with bankruptcy, certain recent taxes might not be dischargeable. This is common for property taxes.
Seems like Virginia takes these seriously, alright. Thank you for confirming!
Sometimes, county systems aren’t updated quickly. If it’s not about dischargeability, it could be a system lag. Documentation of your discharge might help resolve this with the DMV.
Corey said:
Sometimes, county systems aren’t updated quickly. If it’s not about dischargeability, it could be a system lag. Documentation of your discharge might help resolve this with the DMV.
I’ll make sure to have the discharge papers on hand, just in case!
I had a similar issue. Showed them my discharge letter, and they lifted the block. Worth a try!
Arin said:
I had a similar issue. Showed them my discharge letter, and they lifted the block. Worth a try!
Thanks! I’ll definitely bring my discharge paperwork when I talk to them.
DMV blocks can be a pain. They typically lift it if the taxes are truly discharged. Otherwise, you may still need to pay or negotiate.
Hayes said:
DMV blocks can be a pain. They typically lift it if the taxes are truly discharged. Otherwise, you may still need to pay or negotiate.
Hopefully, this can be sorted without paying again. But I’ll try if necessary.
Even post-bankruptcy, certain state laws allow tax collection if they were due recently. Keep a record of all your paperwork when speaking with county reps.
Tate said:
Even post-bankruptcy, certain state laws allow tax collection if they were due recently. Keep a record of all your paperwork when speaking with county reps.
Thanks for the tip. I’ll keep everything documented.
Had a similar problem in my state. It’s often a hassle with taxes. Hope they can clear it for you without more payments!
rayo said:
Had a similar problem in my state. It’s often a hassle with taxes. Hope they can clear it for you without more payments!
Thank you! It helps to know I’m not the only one dealing with this.