It's over!!! Discharged

[prindia1]

We are finally discharged!!! First I want to thank BKforum because without you guys I would of lost my head.

We filed 01/18/2018
In March 2023 We received a motion to dismiss for non payment. We never missed a payment but later found out there was an error and we were short over 4k.
We paid that in April and in May Trustee said they had all payments
Discharged today August 1, 2023

This was the longest 5 and half years of my life. We learned some valuable lessons that has changed our lives forever. The best part of this was that 47k was paid towards my student loans... I am so grateful for that!!!

For those still in BK keep your head up... It will be over soon.

[justbroke]

I love Chapter 13 discharge posts! Congratulations on making it through!

[Carmella]

Congrats prindia !!!! It's the best feeling , isn't it!

[Liberty73]

Congrats! We are in the final months of our 5 yr 100% plan so hopefully soon I’ll be posting an “It’s over!” Post!! Question on the student loan payment, I also have student loans in my bk, but the trustee has been paying a percentage rather than the minimum payment, which is 3-4x the payment. It looks like student loans will be paid in full thru the BK. But I would’ve rather the minimum payment paid and the rest of the money distributed to the creditors…are student loan payments always handled this way thru Ch 13?

[justbroke]

But I would’ve rather the minimum payment paid and the rest of the money distributed to the creditors…are student loan payments always handled this way thru Ch 13?

Unsecured creditors are treated equally. Student loans are unsecured and treated no differently than any other unsecured creditor, such as a credit card from Bank of America. The Chapter 13 Trustee pays them pro-rata each pay period. So if your student loans are 50% of all your unsecured debt, then the student loans get 50% of your "disposable monthly income" portion of your payment to the Chapter 13 Trustee.

Chapter 13s are designed to pay pro-rata because the money is considered a "pool" of money and is distributed based on the creditor's percentage of the total pool. It makes things much more simple. It also helps the unsecured creditors should the debtor's Chapter 13 fail.

[Liberty73]

Ah gotcha. Thanks for the explanation justbroke!