Increases in Prime Rate of Interest and in EDKY Trustee’s Fee

Chapter 13 fees and interest rates every practitioner in the Eastern District should know.

Chapter 13 Trustee, EDKY: Trustee's Blog

On September 27, 2018, the prime rate of interest increased to 5.25%.

On October 1, 2018, my percentage fee increased to 7.1%.  If you are calculating how much a debtor must pay in order to adequately fund a plan, you need to add at least 7.7% to the total amount of secured claims, interest, attorney’s fee, priority claims, and whatever amount is needed to satisfy the liquidation test.

These increases apply in cases confirmed after the effective date of the changes.

The interest rate for secured IRS tax claims remains at 5%, at least through the end of 2018.  Secured claims filed by the Kentucky Department of Revenue are paid interest at 6% in calendar year 2018.

You can find other posts about interest rates by using the search feature or by clicking on the “categories” link on the right-hand side of the home page.

 

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