Pay your real estate taxes before the York County Judicial Tax Sale: June 20, 2013

The York County Tax Claim Bureau has published notice that the Judicial Sale will take place on June 20, 2013 at 9:00 a.m. If your property is on this list, it is important for you to understand that if you do nothing before the sale, that you will likely lose your property.   

The Judicial sale is distinguishable from the "Tax Upset Sale" that occurs in the fall every year because at the judicial sale, properties are sold "free and clear" of mortgages and other encumbrances.  The properties are sold in order that the County's municipal and school taxes can be paid.

If your property is on the sale list, you may be interested in learning how the “Automatic Stay” under the Bankruptcy Code will stop the Judicial Sale.  In addition to stopping the  Judicial Sale, Chapter 13 of the Bankruptcy Code allows individual property owners the opportunity to pay back their delinquent real estate taxes (as well as any mortgage arrears) over a payment period lasting as long as five years.   Other remedies are available under the Bankruptcy Code for business organizations (such as corporations, partnerships and Limited Liability Companies).  If you do not have the funds to pay back the real estate taxes before the Judicial Sale, relief under the Bankruptcy Code may be your only remedy to prevent sale of your property.

Below is the link to the York County Tax Assessment Office where you can find out how much is owed on the delinquent real estate taxes.

http://yorkcountypa.gov/property-taxes/assessment-and-tax-claim-office/delinquent-tax-information-payment.html

Stay Violation Costs Creditor $3,000

This is a case where I represented the Debtor in which I litigated in bankruptcy court earlier this year in the Middle District of Pennsylvania.  

The Court held that a creditor in possession of property of the bankruptcy estate must immediately and unconditionally turn over the property to the estate once the petition is filed. Having failed to do so, the defendant was liable for the damages caused by his violation of the automatic stay. 

The bankruptcy court previously ruled that the defendant willfully violated the automatic stay by refusing to return the debtor's car to her after she filed for bankruptcy.  The defendant loaned the dbetor the money she needed to recover her car after she defaulted on the payments.  The parties agreed that the debtor would repay hte loan, and that the defendant would have an interest in the car.  When the debtor moved out of the area, she left the car with the defendant.  She then told the defendant that she wanted the car back, but the defendant refused to give it to her.  The debtor filed for bankruptcy relief, and demanded that the defendant refused to return the car.  More than one year later, the defendant returned the car after the bankruptcy court ruled that his continued retention of it violated the automatic stay.  In this ruling, the court awarded the debtor actual damages of $2,500 for attorney's fees and $500 for punitive damages.   

Dean v. Carr Opinion (J. France) - Stay Violation Costs Creditor $3,000 by Brent Diefenderfer

Bullock v. Bankchampaign - Supreme Court defines state of mind for "defalcation" for purposes of non dischargeability

Earlier this week, the Supreme Court held that the term “defalcation” in the Bankruptcy Code (for purposes of non-dischargeability) includes a culpable state of mind requirement involving knowledge of, or gross recklessness in respect to, the improper nature of the fiduciary behavior.   Previously, it was somewhat unclear as to what state of mind was required to prove defalcation of funds in a fiduciary capacity.
 
SCOTUS - Bullock v. Bankchampaign