Taxes Paid With Credit Card
Fifteen month ago I paid our city, county and school property taxes with our Sears Mastercard using those handy, dandy checks they sent to us. IF we file Chapter 7, will we need to come up with the 3K to pay Sears Mastercard back for those taxes?
Answer:
Maybe. There have been some cases stating that using a credit card to pay taxes turns what would otherwise be a dischargeable debt into a priority, nondischargeable one. Speak with your attorney to see if this is the case in your jurisdiction. You should also note that Sears must file a motion with the Court to have its debt declared nondischargeable. For $3,000, it may not be worth it to them. But only the $3,000 used to pay taxes would (even possibly) be nondischargeable, not the remaining $9,000.
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