In re Tolbert (10-41621)
The debtor objected to the claim of creditor SN Servicing Corporation, the current mortgage holder on the debtor's residence, claiming the mortgage was made current in the co-signor's earlier bankruptcy case and claiming that all subsequent payments were made on time. The creditor argued that the mortgage at issue was a simple interest mortgage, a mortgage in which interest accrues daily and failure to pay on time results in an increase in interest rather than late charges. Thus, the co-signor's cure did not reinstate the original amortization schedule because the late payments leading up to that prior bankruptcy resulted in a higher principle. The Court agreed with the creditor and overruled the debtor's objection.