Tennessee v. Hildebrand (In re Corrin)

(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.

Judge: Stranch

Attorney for State: Gill Robert Geldrich, Office of the Attorney General of Tennessee

Attorney for Debtor: Rothschild & Ausbrooks, Mary Elizabeth Ausbrooks, Alexander Koval

2017-02-23-in-re-corrin

Author: Matt Lindblom

In re Bratt

(6th Cir. B.A.P. Apr. 26, 2016)

The B.A.P. holds that the recently-enacted Tennessee statute setting a higher interest rate for property tax claims in bankruptcy does not in fact determine the interest rate for such a claim in bankruptcy. Here, the property tax claim was oversecured, so interest could be paid on the claim pursuant to 11 U.S.C. § 506(b). Sec. 511 provides that the interest rate shall be determined by applicable nonbankruptcy law. The court holds that the Tennessee statute was a “bankruptcy law,” and thus the regular interest rate under Tennessee law applies. Opinion below.

Judge: Wise

Attorney for Government: R. Alexander Dickerson

Attorney for Debtor: Alexander Koval

2016-04-26 – in re bratt

Author: Matt Lindblom