• Is there any protection under the "Innocent Spouse"? My wife has no knowledge of this program and was initiated by her then husband of which he was the one whom qualified.
• Can the bankruptcy be amended to add this old debt which was incurred before the bankruptcy filing? And will it successfully protect my wife and me from this old debt. The state was actually acting as a bank and loaned them the money while incurring interest.
• Did someone drop the ball by not enforcing the lien at foreclosure?
I will let tax agent handle the first one, if he knows.
If the debt is treated as a tax, and it appears it would, it would not be discharged in bankruptcy, so no point in paying to reopen and amend if that is the case. Check with your bankruptcy attorney about how this particular lien is treated in bankruptcy.
It is possible it should have been paid off at foreclosure, but it is likely a junior lien, and as such, the lien was wiped out in foreclosure as it was not a true tax lien, but still may be considered a tax debt.