Missouri federal court addresses entitlement of senior lender to collect default interest after the debtor’s bankruptcy
- August 2, 2019
- Posted by: SMDigital Partners
- Category: News, Recent Developments
The U.S. Bankruptcy Court for the Western District of Missouri held in In re Family Pharmacy Inc. that federal law allows the application of equitable principles to deny a claim for default interest post-petition in an appropriate case. The court also looked to state law to determine whether default interest is deemed a penalty.