(6th Cir. Feb. 23, 2017)
The Sixth Circuit affirms the bankruptcy court’s decision to confirm the debtor’s Chapter 13 plan, which included payment of overdue property taxes under Tennessee law with an interest rate of 12%. The state argued that the interest rate should be 18% due to the additional 6% interest permitted under the applicable state statute for a default penalty. The court holds that the 12% provided in the “nonbankruptcy law” is applicable, while the 6% penalty is not applicable. Opinion below.
Attorney for State: Gill Robert Geldrich, Office of the Attorney General of Tennessee
Attorney for Debtor: Rothschild & Ausbrooks, Mary Elizabeth Ausbrooks, Alexander Koval
Author: Matt Lindblom