Thursday, November 29, 2012

Bankruptcy Law, The Law of Debtors and Creditors Problem Set Answers, Warren Westbrook Sixth Edition - Problem Set 10

 Problem Set 10, p.227-228

  • $3200; pre-petition interest is allowable. §502b (2) excludes the unmatured interest.
  • $3000 principal + pre-petition interest $200 + $0 (No $100 post-petition interest despite state provision) = $3200.
  • $9900, capped at the value of the collateral; $8k principal; $400 post-due interest (§506b); $500 interest after the petition; $1k lawyers’ fee, reasonable (§506b).
  • Bank only gets $5K secured interest; no post-due interest or post-petition attorney’s fee any more; so the unsecured debts $3500; totally allowed claims of 8500; if the attorney fee is allowed under the state law or contract, it will be allowed as unsecured claim.
  • First give $5K from the car to the Bank; second, the bank still has unsecured debts of $3500 (or $4.5k); third, distribute $15K among the creditors of $20K + $3.5K (or $4.5K) + 3.2 Pluming co. in question 10.1

Problem Sets: Table of Contents
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