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    Default Interest Accruing on Nondischargeable Judgment from Bankruptcy Court

    My question involves bankruptcy in the state of: CA
    In 2005, I was awarded a nondischargeable judgment by Santa Ana, CA bankruptcy court. Debtor filed chap 13 (same court), thwarting collection because claims of government agencies to precedence. While my attorney was opposing the chap 13, the court ordered that my judgment accrue 8.5% interest. Eventually, the chap 13 was dismissed. My new collection attorney says I am only entitled to 1.1% interest because the 8.5% only applied to the chap 13, which is over, and 1.1% was the applicable interest when the judgment was awarded. Is this correct?

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    Default Re: Interest Accruing on Nondischargeable Judgment from Bankruptcy Court

    Quote Quoting 4quadrillion
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    In 2005, I was awarded a nondischargeable judgment. . . Debtor filed chap 13. . .the court ordered that my judgment accrue 8.5% interest. Eventually, the chap 13 was dismissed. My new collection attorney says I am only entitled to 1.1% interest because the 8.5% only applied to the chap 13, which is over, and 1.1% was the applicable interest when the judgment was awarded. Is this correct?
    What does the judgment say? It should state that you are entitled to interest at the "Federal Rate" purusant to 28 U.S.C. 1961 and/or it may have a specific number.

    Your collection attny is correct. If the Chapter 13 Judge ordered a higher rate during the course of the 13, once the case was dismissed, that Order no longer had any effect. See 11 USC 349(b)(3) and In re Nash 765 F.2d 1410(9th Cir. 1985).

    Des.

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