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Over the past two decades, as the Federal Reserve has adopted an extraordinarily loose monetary policy, federal interest rates have fallen to historic lows.

Depending on the circumstances, a creditor might be entitled to no interest at all, interest at the very low federal judgment interest rate, a judgment interest rate set by state law, or even a case-specific rate set by the bankruptcy court.

While the question of what interest rate applies to a claim in bankruptcy might seem, at first glance, to be straightforward - it is not.