Legal Question in Bankruptcy in Florida

will filing bankruptcy prevent the running of 10 % interest on a money judgment?

Will the filing of bankruptcy in florida, by a corporating, (chapter 11, converted to chapter 7), stop the running of 10% interest on a substantial california judgment, when a proof of claim has been filed by the creditor?


Asked on 2/19/00, 1:37 pm

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: will filing bankruptcy prevent the running of 10 % interest on a money judgm

Interest stops accruing on general unsecured debt upon filing a bankruptcy. Post-petition interest is only payable where the estate is solvent and all other obligations are paid in full. If the judgment is a lien on any property, interest does continue to accrue at the legal rate to the extent there is equity in the property.

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Answered on 2/24/00, 11:08 am


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