Plymouth Park Tax Services, LLC v. Bowers (In re Bowers)

(6th Cir. July 21, 2014)

The Sixth Circuit affirms the bankruptcy court’s holding that the Ohio real property tax certificate holder was not entitled to Chapter 13 plan payments that included 18% interest pursuant to an Ohio statute, but rather was only entitled to .25% interest as set forth on the certificate itself. The creditor argued the statute governing “redemption” of the certificate, which required 18% interest, controlled over another statute that provided that the interest on a tax certificate accrues at the “certificate rate of interest” while the property owner’s bankruptcy is pending. The Court held that the .25% interest rate applied, as that statutory provision was more specific and controlled over the other more general statute. Opinion below.

2014-07-21 – in re bowers