If you want to keep the property, you will ultimately have to pay the real estate taxes. Unpaid real estate taxes in Wisconsin become a first and paramount lien upon the property of which those taxes are assessed. If not paid, the County will ultimately take the property.
We have filed many cases simply to stop the county from exercising these foreclosure rights.
A Chapter 7 filing is not very helpful in achieving this goal. That case will last a little under four months, and by that time, the county will be able to continue its foreclosure efforts.
Chapter 13 works quite effectively. The real property taxes can be paid over a period of up to sixty months.
The unpaid taxes will continue to accrue interest, but at the rate of 12% per annum. The rate outside of bankruptcy for the interest and penalty is 18%.
