Supreme Court: contractual interest cannot be charged if the bankruptcy case is terminated due to debt repayment

The court added that moratorium interest accrued in the framework of the previous bankruptcy case are not taken into account when determining the signs of insolvency and do not provide the creditor with the right to initiate a new bankruptcy case.

According to the lawyer of Tenzor Consulting Group Venera Plieva for Advokatskaya Gazeta, the definition is noteworthy in that the Economic Board recalled courts on a direct prohibition provided by law, i.e. moratoriums on the accrual of penalties (fines, penalties) and other financial sanctions, as well as interest on the debtor’s obligations. Instead, within the meaning of bankruptcy law, the creditor is entitled to special interest, called moratorium. “In judicial and arbitration practice, a common understanding of the moratorium interest accrued in a bankruptcy case has already been formed – the Supreme Court has previously explained the legal nature and meaning of their accrual,” she said.

Details of the case and an article of the Advokatskaya Gazeta are available link.