You are here

Chapter 13 Standard Interest Rate Effective July 1, 2024

Monday, July 1, 2024

Local Bankruptcy Rule 3015-1(h) provides that the Clerk set in January and July of each year a standard interest rate applicable to plan distributions on secured claims governed by § 1325(a)(5)(B)(ii). This rate may be used to determine the present value of a secured claim to be paid in deferred payments over time unless a lower interest rate is specified in the proof of claim. 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 periods plus 1.5%. 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 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.

The standard interest rate applicable to Chapter 13 plans filed in cases commenced under or converted to Chapter 13 on and after July 1, 2024, is 10.00%.