Tax Lien and Owner's BK

[George P.]

Just curious what were to happen if the owner whose taxes were sold at the auction filed for BK shortly thereafter.
Would that prevent tax lien holder proceed with foreclosing on the property after the redemption period is over?

[J G.]

If an owner of a property that you hold a property tax lien on files for bankruptcy, you absolutely cannot file foreclosure or any other proceedings on that property. You'll need to file a proof of claim as soon as possible to the bankruptcy court to secure payment on your debt. The nice thing about tax liens is that you'll be a priority creditor.

Watch out in NJ as the BK courts are cramming down the interest that you should receive.

http://taxlieninvestingpro.com