In re: Bernardo Romero

In a bankruptcy case, the Seventh Circuit considered the intersection of Illinois property tax sales and bankruptcy law. Specifically, the question of whether a purchaser’s secured claim qualifies as a “tax claim” within the meaning of federal statutes and, if so, what interest rate applies to the claim under the “applicable non-bankruptcy law.” The bankruptcy could held that the secured claim does qualify as a tax claim and concluded that the applicable interest rate is 18 percent and comes from the Illinois Property Tax Code. The Seventh Circuit agreed with this conclusion and affirmed. (BRENNAN, concurring, and HAMILTON, dissenting)