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Legal Memorandum: Interest Rate on a Federal Judgment Lien

Issue: Under federal law, does interest accrue on a federal judgment lien and, if so, at what rate?

Area of Law: Bankruptcy & Creditors Rights, Tax Law
Keywords: Federal judgment lien; Interest rate
Jurisdiction: Federal
Cited Cases: 956 F.2d 152; 964 F.2d 842
Cited Statutes: 28 U.S.C. § 1961; 28 U.S.C. §§ 1961(a), (b)
Date: 12/01/2009

According to the following authorities, the interest rate on a federal judgment lien issued by a bankruptcy court accrues in the manner and at the rate set forth in 28 U.S.C. § 1961:

·                     In re Beguelin, 220 B.R. 94, 100 (B.A.P. 9th Cir. 1998);

·                     In re Pester Refining Co., 964 F.2d 842, 849 (8th Cir. 1992);

·                     Ocasek v. Manville Corp. Asbestos Disease Compensation Fund, 956 F.2d 152, 154 (7th Cir. 1992);

·                     In re Vic Bernacchi & Sons, Inc., 170 B.R. 647, 656-57 (Bankr. N.D. Ind. 1994); and

·                     In re Levitsky, 137 B.R. 288, 292 (Bankr. E.D. Wis. 1992).

Section 1961 of title 28 of the U.S. Code provides in pertinent part:

(a) Interest shall be allowed on any money judgment in a civil case recovered in a district court. Execution therefor may be levied by the marshal, in any case where, by the law of the State in which such court is held, execution may be levied for interest on judgments recovered in the courts of the State. Such interest shall be calculated from the date of the entry of the judgment, at a rate equal to the weekly average 1-year constant maturity Treasury yield, as published by the Board of Governors of the Federal […]

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