Bankruptcy can create a great deal of stress and personal hardship. Our office will work with all taxpayers who find themselves in bankruptcy to ease that burden however we can.

• Taxpayers in bankruptcy are still responsible for remaining current on property taxes that are not a part of the bankruptcy claim. Taxpayers may opt to have their current tax payments included in a bankruptcy plan or pay directly to the Treasurer.
• During bankruptcy, the prosecutor and the courts will issue an automatic stay on foreclosure proceedings, until the bankruptcy case is dismissed or discharged.
• A dismissed bankruptcy will result in a restart of foreclosure proceedings, and property owners will be responsible for all outstanding taxes, penalties, interest, and costs accumulated during the bankruptcy stay. However, if the taxpayer completes their bankruptcy plan and bankruptcy is discharged, the Treasurer will remove any penalties and interest charged on the taxes associated with the bankruptcy.
• In a Chapter 7 bankruptcy, also known as a “no asset” bankruptcy, the taxpayer effectively claims no ability to pay from any source and agrees to surrender his or her property as a part of the case’s resolution. The taxpayer will continue to receive tax bills and statements until a new owner assumes the property, because Ohio law requires our office to send tax bills to the property’s legal owner (or a designated agent).
• It is illegal for anyone to pursue legal action against a property included in an active bankruptcy case unless the court has granted a specific exception. This includes tax liens and foreclosures.

• You should always inform your attorney of any changes in the status of your taxes, as this can have an impact on your bankruptcy case.