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Bankruptcy Court Lacks Jurisdiction re Post-Petition Interest and Collection Costs Issues

By FindLaw Staff on March 12, 2010 3:58 PM

In In Re: Kirkland, No. 09-1379, the court addressed the issue of whether a bankruptcy court had jurisdiction to determine post-petition interest and collection costs to which the creditor was entitled as the result of a default on a student loan that occurred after Chapter 13 estate was closed and the debtor discharged.

As stated in the decision: "ECMC's claim to post-petition interest and collection costs is not a matter "under Title 11" nor is it a civil proceeding "arising in" or "related to" Kirkland's bankruptcy petition."  Also stated in the decision: "A claim to post-petition interest and collection costs is also not a matter "arising in" or "related to" a bankruptcy proceeding."

Thus, in reversing the district court's decision, the court held that the bankruptcy court lacked subject matter jurisdiction in the matter.

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