A person entered a bankruptcy proceeding and after payment of the trustee's fees and the remaining costs of the proceeding, a sum of money was left in the bankruptcy fund.
The Court held that the Bankruptcy Ordinance limits the interest on a bankruptcy debt to the limits of the law, even if there is a higher agreed upon interest rate and authorizes the trustee in a bankruptcy proceeding to determine whether interest or linkage will be paid on the debt. The ordinance is not intended to allow the debtor to evade payment of debts it can pay, and therefore, if the fund remains in balance after distributing dividends to the creditors in an equal manner, the creditors may be paid the balance up to the full amount of the debt. Since the debtor did not report his income as an independent business, submitted missing reports and accumulated a large arrears debt in installments, there is no room to be easy on him and the interest will be paid before the remaining balance will be paid back to the debtor.