Supreme Court of the United States
Rake v. Wade
June 7, 1993508 U.S. 464
Summary
Justice Thomas delivered the unanimous opinion holding that an oversecured home mortgage creditor is entitled to both preconfirmation and postconfirmation interest on arrearages cured through a Chapter 13 plan, even when the mortgage documents do not provide for such interest. Section 506(b) authorizes preconfirmation interest, and § 1325(a)(5) requires postconfirmation payments to provide the present value of the arrearages claim. Section 1322(b)(5), which permits curing mortgage defaults, creates no exception to either requirement. The Court affirmed the Tenth Circuit and did not decide the appropriate interest rate. There were no separate opinions.
Holding
- Entitlement to preconfirmation interest on home mortgage arrearages.. An oversecured home mortgage creditor is entitled under § 506(b) to preconfirmation interest on arrearages cured through a Chapter 13 plan, subject to the value of the collateral, even if the mortgage agreement does not provide for that interest.
- Entitlement to postconfirmation interest on home mortgage arrearages.. An oversecured home mortgage creditor is entitled under § 1325(a)(5)(B)(ii) to postconfirmation interest on arrearages paid through the debtors' Chapter 13 plans.
Docket 92-621
Cited authorities
- 11 U.S.C. §§ 1322
- Rule 12.4
- CA11
- CA11
- 11 U.S.C. § 1322
- 11 U.S.C. § 103
- 11 U.S.C. § 1328
- 11 U.S.C. § 1322
Cited by
- In Re Alexander S. Orenshteyn, Debtor
- In Re Robert D. MacY, Debtor. Anna Lowell Macy v. Robert D. Macy
- In Re. Gianasmidis
- In Re: Laura Nellie Tavares, Debtor
- In Re: Benito Gonzales Jr., Debtors
- Bridget Brown Parson
- Griego v. Fgms Holdings LLC
- In Re Jacalyn S. Nosek, Debtor. Ameriquest Mortgage Company, Appellant v. Jacalyn S. Nosek, Appellee