In re RW Meridian, LLC (County of Imperial Treasurer-Tax Collector v. Stadtmueller)

The automatic stay in bankruptcy prevents a taxing authority from holding a tax sale of the debtor’s property after the bankruptcy petition is filed even if the tax lien redemption period expired before the petition was filedDistinguishing In re Tracht Gut, LLC (Tracht Gut, LLC v. Los Angeles County Treasurer) (9th Cir. 2016) 836 F.3d 1146 on the ground that it involved a pre-petition tax sale, this decision holds that even after the redemption period has expired on an unpaid tax lien, the property owner holds equitable and legal rights in the property until the tax collector has received the full purchase price at the tax sale of the property.  Hence, the automatic stay in bankruptcy prevents the tax collector from conducting the tax sale after a bankruptcy petition has been filed even if the petition is filed after expiration of the redemption period.

Ninth Circuit Bankruptcy Appellate Panel (Jury, J.); February 3, 2017; 2017 WL 473808

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s