Bankruptcy Filings and Property Taxes
When a taxpayer files
bankruptcy and lists the Cass County Collector as a
creditor, the Collector typically receives a notice
of the bankruptcy filing from the United States
Bankruptcy Court. The following apply to a
taxpayer's property taxes when he/she has filed
Bankruptcy usually impacts
property taxes assessed at the time the taxpayer
files bankruptcy; i.e., tax liability is assessed as
of January 1, although bills are not created and
payable until November.
· In general, the Collector will
file a claim for any real estate taxes, personal
property taxes and/or special assessments imposed by
a Levy, Neighborhood Improvement District, or Cass
County, that are due or assessed at the time the
bankruptcy was filed.
· Property tax bills will not be
mailed to a taxpayer with a pending bankruptcy case
until the Collector receives notice from the court
that the debtor's case has been closed.
· Property taxes are classified
as secured or priority claims and are rarely
discharged by the Bankruptcy Court.
· Late penalties and fees do not
accrue during the time the taxpayer is in
bankruptcy. However, upon discharge, late penalties
and fees will accrue and become due and payable the
same as taxes as required by law.
Contact the Collector's Office at (816) 380-8378
concerning a bankruptcy filing relating to a
property tax claim.