Student Loan Debt Relief & Chapter 13

[mclawdawg]

Hi all,

Just out of curiosity, if a Chapter 13 plan helps pay your student loans - What happens when that debt is eliminated? Does the trustee payment go down or does more money go towards the creditors?

I have to re-evaluate my plan here in the next couple months or so due to another Child Support payment. I was curious as to what expect with this debt going away from student loans.

Everyone have a blessed day.

[flashoflight]

In a less than 100% plan, you are paying all disposable income to creditors so the payment is still the same. It's a non-event. It's to your advantage that the student loan doesn't file an amended proof of claim because student loans cannot be discharged.

In a 100% plan, your payment could be reduced if the student loan files an amended proof of claim.

I noticed you said "when that debt is eliminated". It should read "IF that debt is eliminated". It is not a done deal and the conservative Supreme Court may decide the opposition has standing. Nobody thought Roe v Wade would be overturned either and now it's gone. I would plan the future assuming student loan forgiveness never happens and be pleasantly surprised if it does happen.