(Bankr. W.D. Ky. Feb. 1, 2017)
The bankruptcy court denies the creditor’s request for default rate interest on the secured claim. The value of the real property securing the claim was in excess of the claim amount. Case law establishes that there is a presumption in favor of the contractual rate of interest, but it is subject to rebuttal when evidence establishes the default rate is significantly higher without justification. Here, the default rate doubled the non-default rate and the court finds there was no justification under the evidence presented. Opinion below.
Attorney for Debtor: Sandra D. Freeburger
Attorneys for Creditor: Stites & Harbison PLLC, Brian H. Meldrum, Brian R. Pollock
Author: Matt Lindblom