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September 10, 2019

Missouri federal court addresses entitlement of senior lender to collect default interest after the debtor’s bankruptcy

By: alan-yatvin

The U.S. Bankruptcy Court for the Western District of Missouri held in In re Family Pharmacy Inc. that federal law allows the application of equitable principles to deny a claim for default interest post-petition in an appropriate case. The court also looked to state law to determine whether default interest is deemed a penalty.

See, https://www.leagle.com/decision/inbco20190708334