6.9 Trustee Not A Bfp Within The Meaning Of § 6323(B)

• Jurisdiction: United States

6.9 VALUATION OF TAX LIENS

The amount of the claim secured by the lien is not necessarily the face amount shown on the lien. The lien is worth only up to the value of the debtor's equity in his or her assets. Stated another way, it is a secured tax claim only to the extent of the value of the unencumbered equity to which it attaches; any excess amount in the tax claim is unsecured. Thus, for example, a lien for $10,000 secured on property worth only $5,000 creates a secured tax claim limited to $5,000; the...