First United Security Bank v. Garner, Sr.

Appellant appealed the district court's affirmation of the bankruptcy court's order that partially overruled appellant's objection to confirmation of the Chapter 13 bankruptcy plan. Appellant contended that under Section 506(b) of the Bankruptcy Code, debtor must pay interest on its claim at the contract rate of 10.5% because appellant was an oversecured creditor. The bankruptcy and district courts found that appellant could only recover post-petition interest at the contract rate from the date of filing until confirmation of the bankruptcy plan. The court affirmed the judgment of the district court affirming the bankruptcy court's order.