Like most questions of law, I'm sure the devil is in the details. I doubt if I will be able to find such a specific answer, and I don't know if anyone would unless they happened to have litigated the exact matter, and even then their result may be dependent on the particular judge they had.
I hope you can find a clear answer, but my guess is, if you do not
find a clear answer, you could file an Objection to the Proof of Claim
filed by the judgment holder in your bankruptcy case, alleging the pre-petition
interest was incorrectly figured since an offer to pay in full was made and rejected by the creditor. The Bankruptcy Court
would then have the authority to reduce their claim by whatever amount is appropriate. If the creditor does not respond to your objection, then you would probably prevail. If the creditor does respond, they would have to show up and explain why they refused payment in full then continued to charge interest, which I'm guessing would not impress the judge. At the very least, this would get the issue before the court who could then rule one way or the other, and you would not always wonder if you paid interest unnecessarily.
You can review the Nevada Revised Statute concerning judgment interest (NRS 17.130) by going HERE
. The statute says interest continues until the judgment is "satisfied," not until offer of payment is made. But, bankruptcy is a court of equity
, which means they can do whatever is fair and equitable, and I believe you have a good argument that in all fairness interest should have stopped when you attempted to satisfy the judgment but the plaintiff refused payment. The creditor will say that what you should have done is went down to the clerk's office for the court which rendered the judgment and paid in full, thus stopping the interest, and let the clerk figure out who to send the money to. So, that will probably be an argument you will have to overcome.
If anyone else knows a more specific answer to your question, I have no objection to them jumping in here with it =)
But, some things aren't in writing anywhere, it is a matter of interpretation and convincing a judge.
JoeLEGAL NOTICE: I am only licensed to practice law in certain state(s) and I cannot give legal advice to someone who does not reside in a state in which I am licensed, nor shall anything I say in the above answer or elsewhere on this site be deemed legal advice, even to someone who resides in a state in which I am licensed. Fees I receive for answering questions are paid for information, not for legal advice. This forum is designed to provide general information only, and information herein is not warranted to be correct or applicable in any way since laws may have been misinterpreted herein, since laws change from time to time, and since the impact of those laws on any particular situation varies. The information presented in this site shall not be construed to be formal legal advice nor the formation of an attorney-client relationship. Persons accessing this response are encouraged to seek independent legal counsel in their jurisdiction for guidance regarding their individual circumstances. Do not take any action or inaction based on information presented herein since it is informational and may not be accurate or applicable to you; it merely attempts to give you a basis of knowledge to help you formulate questions to ask a legal or other professional in a face-to-face meeting in your jurisdiction. Joseph Ross does not hold himself out to be a specialist or expert in any area, regardless of assertions made by any third party, and any implication of being an expert or specialist herein is made in error. I hope the information presented above is useful to you. Answer above is (c) Joseph Ross. All rights reserved.