In Re Gregory Ivory, Debtor. Multnomah County v. Gregory Ivory

Gregory Ivory (“Debtor”) became delinquent in the payment of property taxes on real property located in Multnomah County, Oregon. In response, the County filed a foreclosure action, obtaining judgment on September 20, 1988. Under Oregon law, Debtor then had a two year period in which to pay his taxes and redeem his property. ORS § 312.120. While this redemption period would have normally expired on September 20, 1990, Oregon law also requires that notice of the foreclosure be sent one year prior to the expiration of the redemption period. ORS § 312.125. This notice was not sent until April 30,1990, indicating an expiration date of May 15, 1991.

On April 23, 1991, shortly before his redemption period would have expired, Debtor filed a Chapter 13 bankruptcy petition. Debtor, through his attorney, filed a proof of claim on behalf of the County listing a debt of $2,070 in past-due real property taxes. Pursuant to 11 U.S.C. § 1321 , Debtor submitted a reorganization plan proposing payments of $73 per month on the tax debt including interest at 16% to cure the property tax default and redeem the real property.

On September 13, 1991, the plan proposed by Debtor was confirmed. The…