Property Taxes in a Chapter 13

[MotherTrucker]

Hello all,
Well, I can't believe it. I just received my notice that DH and I have completed all our plan payments for our Chapter 13. It has been a LONG 5 years!!

I am hoping someone out there has some experience with Texas property taxes in a BK. The year we filed, our attorney suggested that we could include our 2006 property taxes in the BK. Payments have been made to the county tax assessor and I didn't realize there was a problem until last Dec. when I got a delinquent tax notice. The tax notice showed that we owed more $ than the trustee was going to be paying out. I contacted my attorney, who did nothing. I called the tax assessor, who said call my attorney. I received another notice in March, contacted the attorney again, this time he says he will contact the tax attorney for the county and see what he/she can figure out. Now, here we are in July, and the tax assessor is saying we owe $385.65 total for the 2006 property taxes. Now the attorney is saying the simplest and cheapest approach is for us to just pay the taxes. Otherwise, we have to file a motion that will delay closing the case for a couple of months.

I have left a message for the legal secretary for the county attorney. Since it is taxes, I don't see that I have a choice on whether or not to pay this, but I'm still upset. I thought everything was taken care of and I still have to pay in MORE $$? Anybody got any ideas? We are so close to being done. I want that discharge so bad I can taste it!!

Thanks everyone!!

[IamOld]

CONGRATULATIONS!!!!! First of all!!!!!

I'm not honestly sure what the answer is, but it sounds like your atty just wants to be done with it...BUT if they - the county - got paid what the plan called for, then the county isn't entitled to anything else...it may very well be that when the Trustee's office performs the final accounting, they'll send the co the $300 and some...

[MotherTrucker]

Thank you so much!! We will be so GLAD to put this "chapter" of our lives behind us...ha ha!

Our attorney hasn't been very responsive on things and I've really had to push to get anywhere with him, so his answer doesn't surprise me. I just don't think I should have to pay more than what is provided for in the plan. Either our payments were misapplied, or the interest was calculated incorrectly by the Trustee, but either way, we shouldn't have to foot the bill! It just doesn't seem right.

[IamOld]

Right MotherTrucker - and alas this is exactly why the atty needs to get off his rear end and do just a few more things for you!!! It is entirely possible of course that the county's made an error!

[lrprn]

First, congratulations on completing your Ch 13 successfully! That's a tremendous achievement!

A question for you....what did the county tax assessor file as what you owed when they filed the claim to be paid through your Ch 13? If that amount didn't include the extra they are saying you owe now, how can they say at the very end of your plan that you owe them more money?

Of course if the $385.65 was included in the total they said you owed when they filed their claim, then how did the trustee miss paying them the extra cash?

Regardless, I have to say that paying $385.65 for some peace of mind and a faster Ch 13 closing doesn't seem like very much to pay after the many thousands that you have paid into your plan over many years to get your case closed on time. Agree that your lawyer could definitely have been more responsive, but honestly, is $385.65 a hill to die on?

Just want you to step back for a moment and think this through. Is potentially paying your lawyer more than $385.65 in fees to make the filing just to save $385.65 which then also extends your case at least several more months really worth it?

It's your decision to make of course.

[IamOld]

First, congratulations on completing your Ch 13 successfully! That's a tremendous achievement!

A question for you....what did the county tax assessor file as what you owed when they filed the claim to be paid through your Ch 13? If that amount didn't include the extra they are saying you owe now, how can they say at the very end of your plan that you owe them more money?

Of course if the $385.65 was included in the total they said you owed when they filed their claim, then how did the trustee miss paying them the extra cash?

Regardless, I have to say that paying $385.65 for some peace of mind and a faster Ch 13 closing doesn't seem like very much to pay after the many thousands that you have paid into your plan over many years to get your case closed on time. Agree that your lawyer could definitely have been more responsive, but honestly, is $385.65 a hill to die on?

Just want you to step back for a moment and think this through. Is potentially paying your lawyer more than $385.65 in fees to make the filing just to save $385.65 which then also extends your case at least several more months really worth it?

It's your decision to make of course.

I think you're quite right!!!!!

[MotherTrucker]

Thank you for your response - I greatly appreciate it! I checked the proof of claim for the property taxes and all that is included is the base amount owed which was paid. On NDC, it shows an interest rate of 12% and I don't know how that interest was determined - it isn't referenced anywhere in any of my paperwork. I do know that there is interest added to delinquent property tax payments, so I thought that was the standard rate agreed to by the county. I have actually paid $566.00 in interest on this claim. Apparently, that isn't enough.
I completely understand your point. I fully expect that filing a motion would cost me more than this amount, delay the closing, and potentially I would still end up owing the $ anyway. I was just inquiring to see if anyone else had experienced this problem, and if so, how they handled it. I think I will wait to pay these taxes until after the Trustee's audit is completed. Perhaps they will catch it and something will be done about it then. If not, I'll pay it. Thanks again for your help! I shall live to fight another day!!

[MotherTrucker]

UPDATE - Just waiting on the discharge now!!!

Well, my attorney got to the bottom of it! Now I feel a little guilty for dissing him -

It turns out that the interest and penalties have actually been paid; however, they will not be abated until AFTER the discharge. I assume this is done in case you don't complete your plan and/or get your discharge and the interest and penalties would need to remain on your account.

The same situation occurs with the IRS - any interest and penalties continue to accrue on your account and are not abated until AFTER the discharge.

Problem Solved!! Now I can truly let this whole thing sink in....we are almost DONE!!