Tax liens can be discharged only in a chapter 13 bankruptcy. This is because you have to strip down the lien to the value of your estate. Stripping down a lien means you are paying only the unencumbered value of the assets that are securing the lien. Assets being clothing, household assets, vehicles, boats, land, and houses to name a few.

     All estates are worth something, if only the clothes on your back or money in your wallet. You have to pay back to the Internal Revenue Service or Georgia Department of Revenue the value of the assets plus interest.

     The remaining amount owed on the lien is discharged in the Chapter 13 bankruptcy.

     If you have both Federal and State liens against you, the oldest liens get paid first.

     Call Custer, Custer & Clark, LLC, if you need to file bankruptcy on tax liens.