48% interest to 3rd place security lender who paid $160,000 to 1st place in last 60 days.
Posted: Mon Jan 16, 2012 6:39 pm
Was the cure payment to an insider?
Yes interest can be lowered, in re till applies, but a third may still get a high interest rate.
This case will be a fight. You will have to prove the appropriate interest rate, and depending on the judge, the rate could exceed the till 3 percent cap above market.
Sent from my iPhone
On Jan 16, 2012, at 12:09 PM, Catherine Christiansen wrote:
> PC wants to file a Chapter 11. One investment property has 3 private lenders. 3rd place private lender, used broker, and has 48% interest for any advances. 3rd place just brought 1st current with $160,000 payment. I believe this is an advance that will be subject to 48% interest. PC, who is going to obtain appraisal believes 3rd will be secured. 48% interest payment on debt to 3rd creates monthly payments to creditor that are to high. >
> Could the payment by the 3rd to the 1st be considered a preference?
> Can the 48% be changed through the Chapter 11?
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> Thanks.
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> Law Office of Catherine Christiansen
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Was the cure payment to an insider?Yes interest can be lowered, in re till applies, but a third may still get a high interest rate. This case will be a fight. You will have to prove the appropriate interest rate, and depending on the judge, the rate could exceed the till 3 percent cap above market. Sent from my iPhoneOn Jan 16, 2012, at 12:09 PM, Catherine Christiansen <christiansenlaw@yahoo.com> wrote:
The post was migrated from Yahoo.