Investment in Education Act of 1997

Investment in Education Act of 1997 - Amends Federal bankruptcy law with respect to distribution of estate property (or property proceeds) subject to an unavoidable lien securing an allowed claim for a tax. Specifies that such an unavoidable lien does not include a properly perfected unavoidable tax lien arising in connection with an ad valorem tax on the estate property (thus exempting the holder of such a tax lien from subordination to other claimants according to the established distribution schedule). Declares that administrative expenses entitled to first priority payment from a debtor's estate (other than claims for wages, salaries or commissions arising after the filing of a petition for relief from debt) shall be limited to expenses incurred under Chapter 7 (Liquidation) and shall not include expenses incurred under Chapter 11 (Reorganization). Requires the bankruptcy trustee, before subordinating a tax lien which has arisen by virtue of State law, to: (1) exhaust the estate's unencumbered assets; and (2) recover from property securing an allowed secured claim the reasonable, necessary expenses of preserving or disposing of that property. Provides that claims for wages, salaries, and commissions entitled to distribution priority, including claims for contributions to an employee benefit plan entitled to fourth priority, may be paid from property of the estate which secures a tax lien or the proceeds from such property, subject to the other requirements of this Act. Prohibits the bankruptcy court from determining the amount or legality of any tax, related fine or penalty, or any addition to tax arising in connection with an ad valorem tax on real or personal property of the estate if the applicable period for contesting or redetermining that amount has expired under any law other than a bankruptcy law. Provides that exempt property shall be liable for debts in connection with certain taxes or customs duties, or with a court order for child and spouse support.