Bankruptcy & Collecting Late Fees

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Question:

Is a Bank allowed to assess and collect those late fees assessed during the automatic stay period of a Chapter 7 or 13 Bankruptcy?

Answer:

You should ask counsel this question. Court opinions I have read indicate that it can depend on what impact this will have on other creditors, whether the charges are deemed to be punitive what your position is based on your debt and collateral.

First published on BankersOnline.com 2/3/03