Bankruptcy Filing by Property Taxpayer and Impact on Property Taxes

When a taxpayer files bankruptcy and lists the 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.

• 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 Levee, Neighborhood Improvement District, or Boone 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 (573) 886-4427 concerning a bankruptcy filing relating to a property tax claim.