(630) 378-2200
Mon - Fri 8:00am - 5:00pm
Request a Case Evaluation


The Supreme Court, in a complicated split, has ruled on the appropriate interest rate for a Chapter 13 plan for a secured claim (whose collateral is an automobile).

The Court”s opinion, written by Justice Stevens and joined by Justices Souter, Ginsberg and Breyer, states that the appropriate rate is the market rate which includes an element of risk, with a likely result of the prime rate plus an additional 1% to 3%. Justice Thomas ruled that the discount rate need not include an adjustment for risk and, therefore, under the circumstances in which the case was presented, concurred with Justice Stevens.

In the case at bar, the debtors purchased a truck for approximately $6,700, including taxes and charges. After a $300 down payment, the balance of just over $6,400 was financed at a rate of 21%. In the Chapter 13 case, after the parties had agreed that the vehicle was worth $4,000 (in contrast to the outstanding balance of approximately $4,900), and, after an evidentiary hearing, the Bankruptcy Court approved the debtors” plan which included an interest rate of 9.5%. The Court of Appeals reversed, utilizing a rate that could be obtained if a new loan was obtained under the circumstances, and ruling that the “original contract rate should serve as a presumptive [cram down] rate.”
TILL ET UX. v. SCS CREDIT CORP. (St. Court 2004)

9 Responses
  1. heropoo

    Hi, I was just blog surfing and found you! If you are interested, go see my bank loan related site. It pretty much covers bank loan stuff. I guess you may find something of interest.

  2. Johnny

    Hello, just visited your blog, it’s geat. I also have a payday loan related blog with some useful articles about the topic. Hope that it is helpful to you.

  3. Anonymous

    Hey, you have a great blog here! I’m definitely going to bookmark you!

    I have a Loan site/blog. It pretty much covers Loans related information. We provide online applications, business, residential, we do all loans.

    Come and check it out if you get time 🙂

  4. Anonymous

    Great blog! I often write about dallas title loan. Check out my dallas title loan site. It mostly deals with dallas title loan.

  5. Anonymous

    Just read your blog. Very interesting, I will be sute to bookmark it. Perhaps if you get time you could visit my low cost payday loan site.

Leave a Reply

Let us help you!

If you need any helps, please feel free to contact us. We will get back to you with 1 business day. Or if in hurry, just call us now.

Call : 630.378.2200

Request a Case Evaluation