If you have a lien against your home due to an IRS tax debt or lawsuit judgment, you may be able to have that lien removed by filing bankruptcy.
A home lien is a secured debt backed up by the value of your home. Florida homestead laws protect equity in homes from legal judgments - meaning the lienholder cannot force a sale of the property. However, a judgment lien against your home will create a problem when it comes time to sell. Before you refinance or sell your home the lien must be paid at closing so the title is clear for the buyer.
It is possible to file a motion and void a judgment lien. After obtaining an order from the bankruptcy court, record a certified copy in the official records of the clerk of courts office for the county in which your Florida homestead property is located.
In a Chapter 7 bankruptcy, an order to void a judgment lien discharges the debt. Though, in a Chapter 13 bankruptcy, the lien is treated in whole or part as unsecured and you may pay a percentage of it. The amount will be determined by how much you can afford to pay and the value of the property securing the debt.
Remember, though tax liens are harder to remove than judgment liens, some tax debts can be removed by filing Chapter 13 bankruptcy.