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In re: Tracy Drake

21 B 4903
Tax purchaser Integrity objected to confirmation of chapter 13 plan on the grounds that the interest rate Debtor proposed did not provide Integrity with the present value of the allowed amount of its claim as required by 11 U.S.C. § 1325(a)(5)(B)(ii).  HELD: Objection sustained.  A portion of Integrity’s claim is a tax claim under 11 U.S.C. § 511.  Therefore, the appropriate interest rate is determined by reference to applicable nonbankruptcy law.  Since a tax purchaser holds a secured claim for delinquent taxes, the applicable nonbankruptcy law is the section of the Illinois Property Tax Code that calculates interest on unpaid taxes at 1.5% per month, or 18% annually.  The appropriate rate of interest on the remainder of Integrity’s claim is determined under the standard set forth in Till.

Wednesday, February 23, 2022