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ARTICLE · 29 APRIL 2016

In Re Bratt

Stoll Keenon Ogden PLLC
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The B.A.P. holds that the recently-enacted Tennessee statute setting a higher interest rate for property tax claims in bankruptcy does not in fact determine the interest rate for such a claim in bankruptcy.

United StatesInsolvency/Bankruptcy/Re-Structuring
Matt Lindblom
Matt Lindblom
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(6th Cir. B.A.P. Apr. 26, 2016)

The B.A.P. holds that the recently-enacted Tennessee statute setting a higher interest rate for property tax claims in bankruptcy does not in fact determine the interest rate for such a claim in bankruptcy. Here, the property tax claim was oversecured, so interest could be paid on the claim pursuant to 11 U.S.C. § 506(b). Sec. 511 provides that the interest rate shall be determined by applicable nonbankruptcy law. The court holds that the Tennessee statute was a "bankruptcy law," and thus the regular interest rate under Tennessee law applies. Opinion below.

Judge: Wise

Attorney for Government: R. Alexander Dickerson

Attorney for Debtor: Alexander Koval

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