Skip to Content

Bankruptcy Blog

We provide insight and analysis on complex issues affecting distressed businesses or funds throughout the United States and abroad. Our Bankruptcy team is available to speak on various bankruptcy issues and claims. Contact us to learn more.

Bankruptcy Blog
August 24, 2021

Mortgage Attorneys Beware! A Bankruptcy Court May Enforce a Lower Interest Rate on a Mortgage Adopted by a Judgement of Foreclosure.

Specifically, where a mortgage creditor did not assert the default rate provided in an action taken to judgment on foreclosure, the bankruptcy court enforced the mortgage interest rate from a state court foreclosure order and determined the total debt to creditor based on the contract rate of 3.25% per annum “through the date to which such interest [was] computed,” versus the higher 18% default rate to which the creditor was contractually entitled had it properly asserted its claim.