18% Interest Rate on Secured Property Tax Claim In Ch. 13
Posted: Mon Oct 08, 2012 2:35 am
Any thoughts on how to counter an 18% interest rate claimed on a (Riverside County Tax Collector's) secured property tax claim in my debtors' Riverside Chapter 13?
Tax collector's authority: Bankruptcy Code Sections 506(b), 511 (new Code section in 2005), and Cal. Revenue and Taxation Code Section 4103, which presents a statutory scheme for the huge interest rate.
My authority for debtors: In re Collier, 416 BR 713 (No. Dist. CA 2008), where Judge Tchaikovsky holds that Alameda County's claimed secured tax claim as to the asserted 18% interest is preempted per the Supremacy Clause as an unenforceable penalty. The problem is that when I Shepardize the case it still appears to be good law, but the Judge issued an apparently unpublished memorandum reversing herself in the Northern District bankruptcy case (08-43740).
Michael Chekian, Esq.
Chekian Law Office
11400 W. Olympic Blvd. #200
Los Angeles, CA 90064
(310) 390-5529
Fax (310) 451-0739
e-mail: mike@cheklaw.com
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