Legal Question in Bankruptcy in California

Question regarding California property taxes in a CH13 plan. I am currently in a plan which has paid the amount that was claimed by the county, but in the claim they also state that the debt continues to accrue 18% interest until paid off. The county website also shows the amount of the debt increasing with each month. At the end of my plan will I be responsible for this additional debt and redemption fee or will this be discharged at the end of my plan? Should I find a way to pay off the additional amount while it is relatively small? I am planning to stay in the home if that makes a difference.


Asked on 5/25/10, 9:54 am

1 Answer from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

What you really need to do is talk to your attorney and find out what the provisions of the Chapter 13 plan. The plan may propose an interest rate lower than 18% and if confirmed, the interested rate might be binding on the county. If your plan does not provide for the payment of interest, you should probably amend the plan so that you don't end up in a dispute with the county after your bankruptcy is over regarding whether or not your cured the tax arrearages through the plan payments.

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Answered on 5/26/10, 1:06 pm


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