Full question:
Where can I find IN WRITING, that a creditor is entitled to interest accrued to be added to the Judgment amount, when debtor defaults on a BK settlement agreement, when it is written in the Judgment that interest is owed, as well as permissible fees, when debtor defaults on the Settlement Agreement? I am asking where this can be found in WRITTEN FORM? I have learned that the interest earned on the Judgment Amount is collectible at the time the Judgment is executed; however, counsel believes I am only entitled to .34% of the Judgement Amount from the time the Judgment was filed, 8 mos. ago.
- Category: Judgments
- Date:
- State: Colorado
Answer:
If a debtor defaults on a bankruptcy settlement agreement, the bankruptcy court and the appointed trustee will handle the situation. If you obtained a judgment before the debtor filed for bankruptcy, that judgment can accrue interest. In Colorado, the interest rate on a judgment is 8 percent per year if no rate is specified, or it can be the rate stated in a written contract, from the date the judgment is entered until it is fully satisfied (C.R.S. 5-12-102(4)).
The bankruptcy court will address the judgment debt, which may be discharged. The bankruptcy trustee, appointed by the U.S. Department of Justice or creditors, manages the debtor's non-exempt property, pays expenses, and distributes funds to creditors. They also ensure that both creditors' and the debtor's interests are upheld according to bankruptcy laws.
To find specific written information about your case, you should review the debtor's bankruptcy file. The settlement agreement may contain terms regarding defaults. If it does not, you may need to petition the court or trustee for clarification.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.