Personal Bankruptcy bankruptcy

[neal_cohen]

In a chapter 7 Liguidadtion can a secured creditor allow intrest to accrue
. There are personel guarantys invovlved that will be litigated,but
intrest has been accring for two years

 

[Michael Wechsler]

I'm not sure I understand the question and situation.

 

[neal_cohen]

S corp goes in to 7 liquidation. secured credidor liquidates assets. Balance of loan is secured by personel guaranty. Guaranty is being
litigated. Can secured party keep accruing intrest on money owed.

 

[Michael Wechsler]

I'm not sure -- the first thing I would do is look at the loan agreement the guarantor signed. If done properly, it should state exactly what the terms are in looking at the guarantor for the remaining balance.