Legal Question in Bankruptcy in Texas

Late fees during a bankruptcy

During the term of a bankruptcy can a creditor charge late fees for late or non-payment, if that Contract for Sale is not included in the bankruptcy? Or are all penalties and late fees suspended during the term of the bankruptcy?


Asked on 7/02/08, 4:37 pm

1 Answer from Attorneys
Alex Wathen Wathen & Associates

Re: Late fees during a bankruptcy

All debts you have are "included" in the bankruptcy. The question is how are they treated and are they within one of the discharge exceptions. If the debt is dischargeable so is the late fee, if not then maybe not. It depends on the debt. If you are paying taxes through a chapter 13 then the IRS cannot add any new interest and penalties during the bankruptcy and the same is true for many other creditors. More information is necessary to give a precise answer.

Alex

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Answered on 7/10/08, 6:06 pm


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