26 Oct Treatment of Interest on Nondischargeable Debts
During a Chapter 13 bankruptcy case, interest continues to accrue on nondischargeable debts, such as priority tax claims and student loans. See Internal Revenue Service v. Cousins (In re Cousins), 209 F.3d 38 (1st Cir.2000).
Due to the automatic stay, a debtor often does not realize this until their case closes and an updated loan balance is obtained. Even a debtor who proposes to pay 100 percent of the nondischargeable claim through his plan must be wary of this result.
Nicholas Ortiz, Boston Bankruptcy Attorney
Latest posts by Nicholas Ortiz, Boston Bankruptcy Attorney (see all)
- Bankruptcy and Arrest Warrants - August 23, 2013
- Massachusetts Mortgage 150-Day Right to Cure and Bankruptcy - July 23, 2013
- Unauthorized Practice of Law Gains Attention of U.S. Trustee - June 23, 2013
- What is a Prepackaged Chapter 11 Bankruptcy? - May 23, 2013
- Marital Adjustment Allowed to Set Commitment Period - April 25, 2013