QUESTION

If my sister filed a loan due to me on a chapter 13, may I include 3 years of interest on my claim?

Asked on Aug 22nd, 2014 on Bankruptcy - Michigan
More details to this question:
I loaned monies via credit card and she has filed a chapter 13 bankruptcy including me as a creditor. Since the agreement was to bill my credit card, may I include 3 years interest when I file my claim? The chapter 13 is to extend for the next 3 years.
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8 ANSWERS

Interest at whatever was agreed to in writing. If there is no writing, that may be tricky.
Answered on Aug 27th, 2014 at 5:11 PM

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Commercial & Bankruptcy Law Attorney serving Powell, OH at Ronald K. Nims
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You can claim only the amount which is owed on the date she filed bankruptcy. So all the interest which was earned before the filing would be included but nothing for interest after the filing.
Answered on Aug 25th, 2014 at 4:24 PM

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Bankruptcy Attorney serving Las Vegas, NV
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You may include interest up to the date of the filing of her bankruptcy so long as the contract you have with her allows for interest.
Answered on Aug 25th, 2014 at 2:41 PM

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That depends on your loan agreement and the terms of her filed plan. If your loan agreement included interest at a certain rate, then your claim could include interest from the date of the loan to the date of her bankruptcy. From there, her plan would say whether you would get interest. In most cases, unsecured debt does not.
Answered on Aug 25th, 2014 at 2:15 PM

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Bankruptcy Attorney serving Las Vegas, NV at A Fresh Start
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Sure, if the loan provided for the payment of interest, file the claim for the full amount owed to you.
Answered on Aug 25th, 2014 at 1:12 PM

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Bankruptcy Attorney serving Overland Park, KS at Wellman Law LLC
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It's the amount owed at the time the Bankruptcy was filed. You do not figure future interest into balance owed at filing. There is a place in the Proof of Claim to list interest rate. Practically speaking, interest rate is not relevant in the majority of claims. Because unless there are facts going toward non-dischargeability (and a complaint filed etc.) and unless the claim is secured, you will be getting 0% interest. To go even further, there may be a partial dividend, or no dividend, to general unsecured claims anyway. This is because unless it's a "100% plan" you would not be getting the full amount owed. There should be a clause in their Plan that states what each type of creditor is to receive. The Trustee may be willing to explain what will be paid out to you under the terms of this plan, so you might give their office a call. Court clerks might be willing to answer very specific questions about Proof of Claim drafting as well and that's the general nature of your question.
Answered on Aug 25th, 2014 at 12:57 PM

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Bankruptcy Attorney serving Walnut Creek, CA at Alan E. Ramos Law Offices
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You can include interest up to the day that the bankruptcy petition was filed, but not beyond that date. This answer was provided as a public service to a question posed on the Law Q & A website. The answer is based on the information provided and is limited to those facts. Furthermore, the answer is based on California law and their application to bankruptcy law in California. Additional information could change the context of the question and materially change the answer.
Answered on Aug 25th, 2014 at 12:51 PM

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Appellate Attorney serving Grosse Pointe Farms, MI at Musilli Brennan Associates, PLLC
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You are allowed to claim the interest due to the date of her filing as part of your claim.
Answered on Aug 25th, 2014 at 12:50 PM

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