Does Section 1325(b)(1)(A) Hold Your Interest?

When Does The Bankruptcy Code Require The Payment Of Interest On Unsecured Claims In Chapter 13?

I. Introduction

This article primarily discusses the interpretation and application of § 1325(b)(1)(A) of the Bankruptcy Code in relation to the payment of interest to general unsecured creditors in chapter 13 bankruptcy cases. Section 1325(b)(1)(A) generally states that a court may not approve a chapter 13 plan unless the value of property to be distributed under the plan on account of such claim is not less than . . .

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Daniel M. Tavera

Law Clerk

Daniel M. Tavera, Law Clerk

The Honorable John P. Gustafson

United States Bankruptcy Judge, Northern District of Ohio

John P. Gustafson was appointed United States Bankruptcy Judge for the Northern District of Ohio in April 2014. In his former life, he was a bankruptcy law clerk, an associate and partner in a law firm representing both debtors and creditors, a solo bankruptcy practitioner representing debtors, banks and trustees, the staff attorney to a Chapter 13 trustee, and since October 1, 2007 he has been the Standing Chapter 13 Trustee for the Northern District of Ohio, Western Division. Judge Gustafson regularly writes and speaks on a variety bankruptcy issues.

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