After property taxes are delinquent for the period the statute requires, the county certifies the parcel for the annual tax sale and sends notice to the owner. At the sale, the property goes to the highest bidder. The buyer does not receive the deed that day; it receives a tax sale certificate, and the owner’s right of redemption begins.
Indiana law gives the owner a redemption period after the sale, generally one year, during which the property can be recovered by paying the amount of the sale plus a statutory premium, interest on any overbid, and the taxes and costs that have accrued since. The purchaser must send notice of the sale and the redemption deadline, and failure to give proper notice can defeat the purchaser’s claim to the deed. If the period expires with no redemption, the purchaser petitions the court for a tax deed and the home is gone.
Before the sale, a Chapter 13 bankruptcy stops the county from selling the property and lets the delinquent taxes be paid through the plan over three to five years, with the stay protecting the home the whole time. After the sale but before the redemption period expires, the right of redemption is property of the bankruptcy estate, and a Chapter 13 plan may be able to fund the redemption. The timing rules here are technical and the deadlines are unforgiving, which is why the right time to call is as soon as the tax bill is one you cannot pay, not after the sale notice arrives.
Most counties will set up a payment arrangement for delinquent taxes before certification for sale. Indiana also has property tax deductions and caps that reduce the bill for homesteads, seniors, veterans, and people with disabilities, and many homeowners are not receiving the ones they qualify for. Fixing the deductions can sometimes make the arrears manageable without a filing.
Call immediately. Until the redemption period ends and the tax deed is issued, the home can still be recovered, and the purchaser’s notices are frequently defective. We review the sale, the notices, and the deadlines and tell you what it would take to get the home back.
The first meeting is free, in person at either office or by phone or video. Bring whatever you have: bills, collection letters, pay stubs, a tax return if it is handy. We go through the whole picture, tell you whether bankruptcy is the right tool and which chapter, and quote a flat fee with a payment plan. Nothing is filed until you are comfortable with the plan. More about how we handle bankruptcy cases.
Admitted to the Indiana bar at 24, the youngest licensed attorney in the state at the time, Miguel pairs that early start with more than fifteen years helping Northwest Indiana families through injury claims and bankruptcy.
Generally one year from the date of the sale for a standard tax sale; shorter periods apply to some county-held certificates. The exact deadline depends on the type of sale, and we confirm it from the county records.
The sale amount plus a statutory percentage that increases after the first six months, interest on any amount bid above the minimum, and taxes and costs paid by the purchaser since the sale.
Yes, if filed before the sale. A Chapter 13 pays the delinquent taxes through the plan while the automatic stay keeps the county from selling.
Call either office or send a message. We will tell you plainly whether bankruptcy is the right tool, and which one.