Am I Required to Pay Property Taxes On My Vehicle if I Surrender it in Bankruptcy?
The answer is yes. Property tax evaluations on vehicles are done the year prior to issuing the bill. Meaning, you’re paying the taxes from the previous year when you had the vehicle. Just because you are now surrendering the vehicle when filing for bankruptcy, it does not mean you were not the owner of the property for the previous year. Since you were the registered owner of the vehicle at the time the evaluation was done, you will be responsible for the bill when it comes.
Once you surrender your vehicle through the bankruptcy, it is very important that you turn your tag in to the Department of Motor Vehicles. You may also be required to fill out additional paperwork letting the county and state know that you are no longer the owner of the vehicle. The county and state has no other way of knowing what the situation is regarding your vehicle unless you notify them.
Also, if you do decide to surrender your vehicle in bankruptcy, you will want to set aside the necessary funds to pay your property taxes when the bill arrives, or you could face the penalties of the county in which you reside in.
Contact us for a free consultation today
Charlotte: (704) 563-1224
Greensboro: (336) 856-1234
Winston-Salem: (336) 245-4294
Share this entry