In re Jones

Posted on August 5, 2015. Filed under: Uncategorized |

The Bankruptcy Court for the Eastern District of Kentucky Says Till Stands For Cramdown Interest Rate in Chapter 13

Kentuckiana Bankruptcy Opinions

(Bankr. E.D. Ky. Aug. 3, 2015)

The bankruptcy court revisits the issue of the appropriate cramdown interest rate to apply in a Chapter 13 plan. The court holds that the “formula approach,” as set forth in the plurality opinion in Till, determines the correct rate. The debtor’s plan proposed to pay the secured creditor’s claim with interest at 5.25% (2% over the Wall Street Journal prime rate). The creditor argued that Till was not binding and that prior Sixth Circuit law provided the appropriate standard. The court provides a good discussion of the history of Till and its application in the Sixth Circuit and concludes that the “formula approach” is the correct standard. Opinion below.

2015-08-03 – in re jones

Author: Matt Lindblom

View original post

Make a Comment

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Liked it here?
Why not try sites on the blogroll...

%d bloggers like this: