Property Taxes

[walkthaplank]

I was just reviewing the claim made by my county's tax collector for the property taxes included in my CH13 plan. According to their claim, the base amount continues to accrue interest until it has been paid off. Am I going to continue accruing interest on this amount? Is the interest considered part of their priority claim or is it considered unsecured and they are paid the pro-rata amount of interest like the other unsecured creditors? The reason I ask is that the taxes are scheduled to be paid off over the full 60 months.

Anybody have any experience with that in California? Thanks

[AngelinaCatHub]

ONLY an opinion. I thought land taxes in default were sold as tax certificates up to 18% and bid on downward. (Here in FL). I also thought that bk 13 would stop interest (unless sold in a tax certificate). I am a C7 person so perhaps "JustBroke" may come on. He surely will know. 'Hub

[walkthaplank]

Anybody?

[justbroke]

I was just reviewing the claim made by my county's tax collector for the property taxes included in my CH13 plan. According to their claim, the base amount continues to accrue interest until it has been paid off. Am I going to continue accruing interest on this amount?

Please forgive me as I'm not versed in the California Civil Code (CCC), but I understand that property taxes don't enjoy "statutory" lien status, as they do in States like Florida. In that case, the tax assessor would actually have to file a tax certificate or something like that, in order to establish a lien.

Is the interest considered part of their priority claim or is it considered unsecured and they are paid the pro-rata amount of interest like the other unsecured creditors?

I think how they are treated, is based on the class (classification). If this is past due taxes, they may have actually recorded a tax certificate or something. You'd need to find out. Otherwise, they are unsecured from what I know of the CCC.

The reason I ask is that the taxes are scheduled to be paid off over the full 60 months. Anybody have any experience with that in California? Thanks

I hope someone from California comes along!

[walkthaplank]

Update

Well it looks like the trustee is looking out for me better than my lawyer on this one. I just checked 13datacenter and saw that the ONLY creditor the trustee has paid is my county tax collector. They paid the entire amount I've paid into the plan so far minus trustee fees. That pays roughly 2/3rds of my delinquent property taxes. In my CH13 plan, my lawyer planned for the delinquent balance to be paid off in 60 equal payments, not counting any potential interest or penalties.

[justbroke]

I noticed that some Trustee are better than others. I like and appreciate Trustees like yours who will pay the unsecured creditors dead last. They make sure all the secured, administrative, and priority debt are paid first, even if that means paying them earlier than 60 months.