Legal Question in Bankruptcy in California

Can I charge interest for an unpaid comission to the bankruptcy trust for the former owner of a Franchise I purchased. I am due $810.00 since 9-09. thank you


Asked on 6/29/10, 1:30 pm

1 Answer from Attorneys

David Gibbs The Gibbs Law Firm, APC

First, I believe you mean the Bankruptcy Trustee. A lot more facts are necessary in order to answer your question. First, what chapter of bankruptcy did the former owner file? Are you dealing with a Chapter 7 or 13 Trustee? Interest generally can only be charged if you have a contract for the payment of the $810.00 which includes a provision that interest will accrue on unpaid amounts due, OR after you have obtained a judgment for the amount you are owed. If you have neither, then you probably will be denied any claim for interest. Second, the Trustee is not responsible for repayment of interest. The Trustee is administering the bankruptcy estate, which may or may not actually repay your debt. You need to seek the advice of a competent, experienced bankruptcy attorney, and I'm not sure that over interest on $810 (which, at 10% would be only about $61-62) it is worth paying a an attorney for an opinion. You also need to know if general, unsecured creditors like yourself will be receiving any distributions from the estate. You can charge all the interest you want, but if you are not going to get paid on the claim, then the interest won't be paid either. Nobody is going to pay you anything unless the estate is going to pay a dividend to creditors in the same class as yourself.

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Answered on 6/30/10, 9:15 am


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