12 April 2023
/ John Erin McCabe
Bankruptcy Interest Rates Increase: The Federal Reserve Strikes Again!
Interest rates on secured claims increased recently by 0.25%. The Till Interest Rate on secured claims in bankruptcy being paid through a chapter 13 plan is the prime rate of interest plus a risk factor of one to three percentage points. On March 22, 2023, the prime rate increased to 8.0%. During the same period in 2022, the prime rate stood at 3.5%.
The previous two changes in the prime interest rate as published by the Wall Street Journal were:
- December 14, 2022: 7.50%
- February 2, 2023: 7.75%
Given the rapid increase in interest rates, it’s imperative that creditors review chapter 13 plans for the rates they provide.
Our team is constantly monitoring this topic. If you have a question or want to connect, feel free to contact attorney Erin McCabe at any time.
This blog is not a solicitation for business, and it is not intended to constitute legal advice on specific matters, create an attorney-client relationship or be legally binding in any way.
