August 2, 2019
The following article provides information regarding student loan treatment in chapter 13 bankruptcy proceedings and discusses some of the issues in ongoing case law and impact on chapter 13 plans in the 6th Circuit. To discuss these issues further, please contact Keller & Almassian, PLC, to set up a consultation or phone call.
Chapter 13 and Student Loans
In light of the difficulty of obtaining a discharge of student loan debt under the Brunner test, debtors frequently turn to Chapter 13 for longer term relief from student loan creditors. In a Chapter 13, the question becomes whether the debtor may treat his or her student loan debts differently than his or her other nonpriority unsecured creditors and not violate the provisions of 11 U.S.C. § 1322(b)(1). The analysis under 1322(b)(1) turns on whether the treatment of the student loan debt “discriminates unfairly.”