How much can I fight for interest on a personal loan made via credit card but now filed on a chapter 13? 7 Answers as of August 27, 2014

Thanks to all attorneys for the answer to my previous question, however, I must ask one more question. If my agreement for a personal loan to a family member was that they pay the balance and the interest on the credit card I billed the loan to and they have now filed a chapter 13, may I present my rebuttal to include interest thru the 3 years life of the chapter 13 before the judge? My whole purpose at the time was to assist in decreasing 308% interest on a title loan to 20% on a credit card and I see in the bankruptcy another title loan has been created and being filed. Although I didn't attempt to secure my loan with the title I was assisting with, I wonder if my point can be argued and possibly upheld in a court and the point is as follows: I assisted a family member in lowering interest on a title loan due to a dire situation and they have not only gotten another title loan but filed me, the previous title loan bailout and the current title loan. Thanks in advance.

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Stephens Gourley & Bywater | David A. Stephens
You can file the claim for the anticipated total owed. The trustee may or may not object to it.
Answer Applies to: Nevada
Replied: 8/27/2014
A Fresh Start
A Fresh Start | Dorothy G Bunce
Are you looking for a fight? Because it is entirely unnecessary! Just file your proof of claim & see what happens. In many Chapter 13 cases, unsecured creditors are paid absolutely nothing. More often than not, when unsecured creditors do get paid, they do not get paid in full & do not get interest. The debtor will be required to pay only what he can afford.
Answer Applies to: Nevada
Replied: 8/26/2014
Steele, George, Schofield & Ramos, LLP
Steele, George, Schofield & Ramos, LLP | Alan E. Ramos
The answer is simply: No. I appreciate that you feel that this is not fair and equitable to you, but unfortunately it is the law.
Answer Applies to: California
Replied: 8/26/2014
Wellman Law LLC
Wellman Law LLC | Keith A. Wellman
The argument to get contract rate of interest or some interest amount higher than what would otherwise be applicable has to center around the strength of a potential Section 523(a)(2) fraud complaint. It starts to get a little difficult for a non-attorney at that point. Fraud for this purpose centers on whether the Debtor ever intended to pay back the debt as agreed. Factors that would be in the Creditor's favor include that the loan was very close to filing (i.e. 75-90 days) or that a payment was never made. Other misrepresentations in acquiring the loan could be relevant as well. In your fact pattern I think the fact that they went and got another title loan after paying off the first suggests that they were not set on Bankruptcy yet, thus hurting an allegation that they never intended to pay back the debt as agreed. I don't see any advantage in obtaining an unsecured debt from you, then using those funds to pay off a secured loan and then re-encumbering that same collateral with another loan. However, if it was different collateral then there may be good evidence towards fraud. This is because it would be very advantageous to take a secured loan prior to Bankruptcy and turn it into an unsecured loan that may get discharged entirely without losing property. The closer to Bankruptcy and the less that was paid on the unsecured loan you made, the better your case for fraudulent intent. An Objection to Plan may be necessary if you believe you have a good argument, but if this is just "I loaned them money and it really helped them and then they got more loans and now they filed Bankruptcy on all of us" that's not a good argument, the factors above need to be in there to get anywhere on a fraud claim.
Answer Applies to: Kansas
Replied: 8/26/2014
Ronald K. Nims LLC | Ronald K. Nims
It's an unsecured loan, the court will not force the debtor to pay interest on an unsecured loan. Also, this is probably a meaningless issue, in most Chapter 13s unsecured creditors get pennies on the dollar.
Answer Applies to: Ohio
Replied: 8/26/2014
    D.J. Rausa, Attorney at Law | D.J. Rausa
    The purpose of the loan, although noble, does not elevate your loan to a specific class of claim. Therefore, you will not be able to collect interest, post filing of the Chapter 13. You will be treated in the same manner as all the other unsecured creditors.
    Answer Applies to: California
    Replied: 8/26/2014
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    Anything is worth arguing I suppose and it will depend on the judge and the district you are in, but in my opinion, these are not compelling arguments without a written agreement. NY is a contract state, and a "hand shake" agreement is not likely to hold up in court. What this person did with another title loan, is her concern because you never put a lien on the vehicle.
    Answer Applies to: New York
    Replied: 8/26/2014
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