Delinq. prop. taxes accrue interest in 13?

[parsoc48]

I thought I had included 2nd installment of 08/09 prop taxes in bk13 filing; the county said no, 2nd installment came due after filing. What bothered me more however was that she said interest and penalities keep on accuring through the 13! I don't think I was told that, or I missed it (amount is $2200); it irritates me too, that Honda is getting paid before these taxes are..they're both secured but somehow Honda has priorty? I faxed a letter to attny. today but don't expect to hear back real soon. Anyone have experience with this?

[justbroke]

I thought I had included 2nd installment of 08/09 prop taxes in bk13 filing; the county said no, 2nd installment came due after filing. What bothered me more however was that she said interest and penalities keep on accuring through the 13! I don't think I was told that, or I missed it (amount is $2200); it irritates me too, that Honda is getting paid before these taxes are..they're both secured but somehow Honda has priorty? I faxed a letter to attny. today but don't expect to hear back real soon. Anyone have experience with this?

Yes. There are some clauses in the Bankruptcy Code which reads that certain government entities are entitled to their statutory interest rates, even in a Chapter 13! However, I'm not sure that they can charge "penalties" on something that was included in the BK. I have to pay my county back at 10% on $5K in arrears! Nothing I can do about it.

I don't understand you "included 2nd installment of 08/09 prop taxes in bk13 filing". I read this as you pay your property taxes throughout the year in installments? I also don't understand how your plan was setup for the "1st installment" property taxes. Generally, most plans lump all the secured creditors into one "class" paying them over time. That means regular mortgage payments, property taxes, vehicles, are all in the same "priority".

I did my own plan and pay my property taxes and my vehicles in 36 months (within a 60 month plan). That's to pay less interest over time, and to pay my unsecured creditors a little more. (Plus my cars are paid for in 3 years!)

You should look at your Plan and see if Honda is being paid back in fewer months than your Property Tax. This could just be your lawyer's strategy. Making a plan work, can be difficult! I personally did my own Plan and it took weeks (4 weeks) to come up with my just filed amendment to my Plan.

[parsoc48]

I don't understand you "included 2nd installment of 08/09 prop taxes in bk13 filing". I read this as you pay your property taxes throughout the year in installments?

Yes, half are due by Dec. 10 and half by April 10

I also don't understand how your plan was setup for the "1st installment" property taxes. Generally, most plans lump all the secured creditors into one "class" paying them over time. That means regular mortgage payments, property taxes, vehicles, are all in the same "priority".

I wasn't clear on this...we included the delinquent amount, $2200, which I thought included what was due on 4/10, in other words all of 08/09 bill. Apparently that amount ($544, due 4/10) was NOT delinquent until then, and we had filed on 4/7.

Generally, most plans lump all the secured creditors into one "class" paying them over time. That means regular mortgage payments, property taxes, vehicles, are all in the same "priority".
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Honda is the only creditor being paid so far, payments started 6/30. So it's just Honda, trustee, and attny. It may be an accelerated payment for Honda as the 2 total, with interest, about $3500.
The attny's office did leave a message today, I will call them back in the morning.
I'll re-read the bill, maybe it was just interest and not penalties. Thanks for the reply, will let you know the outcome.

[BKParalegal]

Most Trustee's have a website for you to look at how your bills are getting paid. I have never seen where the property taxes still accrue penalties but I usually see 12% interest paid during the BK plan.

Good Luck

[parsoc48]

Most Trustee's have a website for you to look at how your bills are getting paid. I have never seen where the property taxes still accrue penalties but I usually see 12% interest paid during the BK plan.

Good Luck

BK, Thanks for the reply. I did look at the website, that's where I got the information that Honda is being paid along with Trustee and attny, but no one else (yet).
The attny's office called and I spoke to the BK asst; said she'd check with the attny re specifics, but agreed with the county that the $544 wasn't "included". She didn't think fees would accrue, just interest. Someone on another site was of the opinion that the whole year's taxes, all of 2007, was actually a debt, that the time of payment (in 2008) had no relevance; he thought the whole year would be included, not just the half that was delinquent at time of filing. We'll see what happens.