Bankruptcy Case Law: Interest Rates and Bankruptcy

BANKRUPTCY CASE LAW:

INTEREST RATES AND BANKRUPTCY

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ONINK v. CARDELUCCI (04/12/02 - No. 00-56541) (9th Cir. April 12, 2002) Awards of post-petition interest to creditors are to be calculated using the federal judgment interest rate, and not the rate set forth in the parties' contract or state law; use of federal rate promotes uniformity of law and fairness among creditors, and does not violate due process. Court concluded that 11 USC Section 726(a)(5) mandates the use of federal judgment rate, rather than contract interest rate. Federal interest rate is calculated pursuant to 28 U.S.C. Section 1961(a). The issue is post-petition interest on a pre-petition judgment which was affirmed in the BK. Question – use judgment interest rate or BK (federal interest)? http://caselaw.lp.findlaw.com/data2/circs/9th/0056541p.pdf

OPINION SUMMARIES ARCHIVE FindLaw archives case law summaries of opinion issued since September 2000 by the U.S. Supreme Court, all thirteen Federal Circuit Courts, the California Supreme Court, the California Appellate Courts, and the New York Court of Appeals. http://caselaw.lp.findlaw.com/casesummary/index.html