QUESTION
If a company file a Chapter 11, has a mortgage on a business property, can they charge interests for the late days during the reorganization?
Asked on Oct 18th, 2016 on Bankruptcy - Nevada
4 ANSWERS
No. The contract (or mortgage instrument) governs.
Answered on Nov 09th, 2016 at 4:06 PM
2 Awards
If there is equity in the property then the creditor may charge punitive as well as regular interest and it's attorneys fees.
Answered on Nov 09th, 2016 at 4:06 PM
Not sure if I understand the question. If the company that filed Chapter 11 has to pay a mortgage, whether they pay interest on the mortgage, how much interest they pay, and when they pay it will be determined by the approved Chapter 11 Plan.
Answered on Nov 09th, 2016 at 4:06 PM
1 Award
Yes, they can charge interest and other late fees or collection fees according to the contract.
Answered on Nov 09th, 2016 at 4:06 PM