[Catsmine]

I have just paid off a Chap. 13 bankruptcy. I now find that the county has been charging interest on the one year's property taxes included in the plan throughout the terms of the plan. The county tax collector's office tells me that this is allowed under North Carolina law. How does a state law trump a federal court order?

[AK lawyer]

11 USC § 1327 provides as follows:

"Effect of confirmation
(a) The provisions of a confirmed plan bind the debtor and each creditor, whether or not the claim of such creditor is provided for by the plan, and whether or not such creditor has objected to, has accepted, or has rejected the plan.
(b) Except as otherwise provided in the plan or the order confirming the plan, the confirmation of a plan vests all of the property of the estate in the debtor.
(c) Except as otherwise provided in the plan or in the order confirming the plan, the property vesting in the debtor under subsection (b) of this section is free and clear of any claim or interest of any creditor provided for by the plan."

So, assuming the county was scheduled as a creditor, unless treatment of the tax lien was "otherwise provided" in the plan, the county is out of luck as to the interest.

[Catsmine]

Oh boyoboyoboy! Off to fight city hall. Hey! You! Go find your own windmill to tilt at!

Seriously, thanks. I needed the relevant section of the Code.