In re Putnal (11-53874)
Loan agreement between the debtor and oversecured creditor provided for 15% attorney fees. Such attorney fees are only enforceable under state law if perfected by a notice that gives the debtor 10 days to avoid the fees by paying the debt in full. The creditor did not send the 10-day notice prior to the petition date, yet requested the contractual amount of attorney fees pursuant to 11 USC § 506(b). The Court allowed attorney fees, but limited them to an amount determined to be reasonable.