You are here

Chapter 13 Standard Interest Rate

Wednesday, December 1, 2021

Local Bankruptcy Rule 3015-1(g) provides that, except for interest on tax claims and on administrative expenses governed by 11 U.S.C. § 511, the Clerk set on June 1 and December 1 of each year a standard interest rate to be used in payments on secured and other claims under a confirmed Chapter 13 plan. The standard interest rate is calculated as the national prime rate of interest published in the Wall Street Journal on the first business day of the respective biannual period plus 1.5%. 

The standard interest rate in effect at the time of the filing of the petition or notice of conversion to Chapter 13 will remain in effect for the duration of the case. However, the setting of a standard interest rate does not bar a debtor or creditor from proposing a different interest rate that may be determined in the confirmation order. The standard interest rate applicable to Chapter 13 plans filed in cases commenced or converted to Chapter 13 on and after December 1, 2021, is:  4.75%