In the United States v. Ron Pair Enterprises, Inc., 1988 case, the Supreme Court ruled that a creditor who held a secured interest in property of a bankrupt debtor was entitled to receive post-petition interest on their claim under section 506(b) of the Bankruptcy Code even if there was no equity in the collateral above and beyond what was necessary to satisfy its lien. The court rejected arguments that such an interpretation would violate principles of fairness or equitable treatment among creditors. It stated that Congress had clearly intended for oversecured creditors to be able to recover post-petition interest as part of their allowed claims against bankruptcy estates, regardless of whether they were also receiving payments from other sources during this period.

In the dissenting opinion for United States v. Ron Pair Enterprises, Inc., Justice O'Connor disagreed with the majority's interpretation of Section 506(b) of the Bankruptcy Code. She argued that post-petition interest should not be awarded to an oversecured creditor in a bankruptcy case unless there is an agreement between parties involved or it is allowed under state law. According to her, this provision was intended by Congress as a protective measure for creditors and not as a punitive one against debtors. She also pointed out that allowing such interest could lead to inequitable results where some unsecured creditors might receive nothing while others get more than their claim due to accrued interest. Furthermore, she criticized the majority's reliance on legislative history which she believed was unclear and contradictory at best.