Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
This is a Colorado Bankruptcy Question. I purchased a tax lien on a commercial property in Denver and found out the underlying business filed Chapter 11 bankruptcy. The disclosure plan seeks to amortize the principal over two years and reduce the interest rate from 10% to 3%. If this plan is approved, would I lose the right to apply for a Treasurer's Deed? My three year holding period ends November 1, 2014, but if the plan is approved, the 2 year amortization period would extend to at least July, 2015.
I have requested a refund because the answer you gave was incorrect. In further researching this issue, according to section 511 of the bankruptcy code as well as sections 1129(a)(9)(C) a bankruptcy court may not modify a property tax lien interest rate below the statutory rate:
§ 511. Rate of interest on tax claims(a) If any provision of this title requires the payment of interest on a tax claim or on an administrative expense tax, or the payment of interest to enable a creditor to receive the present value of the allowed amount of a tax claim, the rate of interest shall be the rate determined under applicable nonbankruptcy law.