Philadelphia Upset Tax Sale Attorney | Chapter 13 Bankruptcy Property Redemption

Losing your Philadelphia home at a Sheriff’s upset tax sale is not the end. At Siddons Law Firm, we use a proven legal strategy combining Chapter 13 bankruptcy with Pennsylvania’s statutory right of redemption to help homeowners reclaim properties sold at tax sales. This approach has been upheld by the United States District Court for the Eastern District of Pennsylvania, and our firm has firsthand experience implementing it for Philadelphia homeowners.

Our Proven Track Record: Using Chapter 13 to Save Philadelphia Homes

Siddons Law Firm has successfully represented Philadelphia homeowners who lost their properties at Sheriff’s upset tax sales. Our approach leverages the intersection of federal bankruptcy law and Pennsylvania’s Municipal Claim and Tax Lien Act to give homeowners a path to redemption — even when they cannot pay the full amount upfront. We have negotiated settlements with tax sale purchasers, obtained consent orders approving stipulations of settlement, and confirmed Chapter 13 plans that restore property ownership to our clients.

The Legal Framework: Why This Strategy Works

This strategy rests on the intersection of three areas of law that work together to protect Philadelphia homeowners:

Pennsylvania’s Right of Redemption (53 P.S. § 7293): The MCTLA gives you nine months from the date the Sheriff acknowledged the deed to begin the redemption process. Importantly, you do not need to pay the full amount within this period — you only need to initiate the process. The tax sale purchaser holds only a defeasible title during this window.

The Automatic Stay (11 U.S.C. § 362): Filing a Chapter 13 bankruptcy petition triggers an immediate automatic stay that halts all collection activity against you, including ejectment proceedings in the Court of Common Pleas. This stops the tax sale purchaser from removing you from your home while you work toward redemption.

Avoidance Powers (11 U.S.C. § 522(h)): The Bankruptcy Code allows the debtor to exercise the trustee’s avoidance powers to void the Sheriff’s deed transferring the property to the tax sale purchaser. Combined with a confirmed Chapter 13 plan that pays the purchaser’s allowed secured claim over time, this effectively restores full ownership to the homeowner.

Federal Court Approval: The In re Terry Decision

The United States District Court for the Eastern District of Pennsylvania confirmed the viability of this approach in In re Otis W. Terry, Jr., Civil Action Nos. 14-6195 and 15-0913 (E.D. Pa. Dec. 21, 2015). In that case, a Philadelphia homeowner’s property was sold at a Sheriff’s tax sale for $120,000. After the purchaser obtained a default ejectment judgment and filed for a writ of possession, the homeowner filed a Chapter 13 petition within the nine-month redemption period.

The bankruptcy court approved a settlement with the tax sale purchaser, avoided the Sheriff’s deed, and confirmed a Chapter 13 plan providing for payment of the purchaser’s $125,624.66 secured claim through monthly installments. When the City of Philadelphia appealed, the District Court dismissed the appeals, holding that the City lacked standing because its claims had been paid in full and it suffered no direct pecuniary injury. The court also rejected challenges based on the Rooker-Feldman doctrine, bad faith filing arguments, and a Rule 1016 death issue.

Who Qualifies for This Strategy?

This approach may be available to you if your Philadelphia property was sold at an upset tax sale and you are still within the nine-month redemption period from the date the Sheriff acknowledged the deed. You must be able to propose a feasible Chapter 13 plan — meaning you need a source of income (yours, a family member’s, or other contributions) sufficient to fund the plan payments. You do not need to have other debts to file Chapter 13 bankruptcy, and filing solely to redeem your property does not constitute bad faith.

Important Limitations

This strategy is most directly applicable to City of Philadelphia properties sold under the MCTLA’s upset tax sale procedures. The surrounding suburban counties — Delaware County, Chester County, Montgomery County, and Bucks County — conduct tax sales under different procedures with potentially different redemption rules. The nine-month deadline is absolute: if the redemption period has expired, this strategy is no longer available. Additionally, the approach requires negotiations with the tax sale purchaser and confirmation of a feasible Chapter 13 plan, both of which require experienced legal counsel.

Act Now — The Clock Is Running

If your Philadelphia home has been sold at a Sheriff’s upset tax sale, every day that passes brings you closer to the expiration of your nine-month right of redemption. Once that window closes, your ability to reclaim your home may be gone permanently. At Siddons Law Firm, we understand the urgency of these cases and can evaluate your situation quickly to determine whether Chapter 13 bankruptcy can help you save your home.

Frequently Asked Questions

Can I get my Philadelphia home back after it was sold at a tax sale?

Yes, if you act within the nine-month redemption period. By filing a Chapter 13 bankruptcy petition and proposing a plan to pay the redemption amount over time, you can exercise your right of redemption under 53 P.S. § 7293 and reclaim your property.

What is the nine-month redemption period?

Under Pennsylvania’s MCTLA, you have nine months from the date the Sheriff executed and acknowledged the deed to begin the redemption process. Filing a Chapter 13 bankruptcy petition with a plan to pay the redemption amount constitutes beginning that process.

How much does it cost to redeem my property?

The redemption amount typically includes the tax sale purchase price plus any additional costs incurred by the purchaser. Through Chapter 13 bankruptcy, this amount can be paid over three to five years in manageable monthly installments, rather than requiring a single lump-sum payment.

Will the tax sale purchaser fight this in court?

Some tax sale purchasers will negotiate a settlement, while others may contest the bankruptcy proceedings. In either case, our firm has the litigation experience to pursue adversary proceedings, negotiate stipulations of settlement, and confirm Chapter 13 plans that protect your property rights.

Does this work outside of Philadelphia?

The Terry decision is most directly applicable to Philadelphia properties subject to the MCTLA. However, the underlying bankruptcy principles apply statewide and potentially nationwide. Contact us to evaluate your specific situation regardless of where your property is located.