Judge Isgur Sides with the Third Circuit and Allows Makewhole Premiums
Creditors are entitled to ‘default interest’ when the debtor is solvent.
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Ninth Circuit Narrowly Reads Section 506(d) on Voiding Liens After Claim Disallowance
A claim must be disallowed based on the invalidity of the debt before the associated lien can be voided under Section 506(d), the Ninth Circuit ruled in upholding the BAP.
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First Circuit Issues a Landmark Opinion on Valuation of Disputed Claims
The value of a disputed claim is proven by showing the likely validity of the claim and the likelihood of recovery, not just by establishing the possible damages.
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In the Minority, 8th Circuit BAP Disregards Equitable Considerations in Allowing Default Interest
As long as the rate is legal under state law, considerations of equity will not allow a court to disallow default interest to an oversecured creditor under Section 506(b).
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