Bankr. No.:
04-40674
Adv. No.:
04-4045
Chapter:
13
Date of Decision:
January 27, 2005
Issue:
Whether, pursuant to 11 U.S.C. ยง 1322(e), a chapter 13 debtor must pay "interest on interest" to cure a default under a mortgage and promissory note?
Ruling:
An agreement to pay "interest on interest" is permissible under South Dakota law. If the mortgage and promissory note include such an agreement, the debtor must therefore pay "interest on interest" to cure the default.
Full Bankruptcy Court Decision:
