My chap 13 is recently confirmed with a 10% payback, which I can live with considering the circumstances. However, I want to know if the entire 10% can be paid to my student loan vs credit cards? I know how it sounds, but the reality is that I owe way more in student loan debt vs credit card debt and I hope to leave the chap 13 in the best financial position possible and that would be if the money would go towards reducing my student loan debt with zero going to my credit cards. I qualified for a chap 7, but choose 13 to keep my home. Anyone have success with this strategy? Any advise before I speak with the atty would be great!
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This strategy would not fly in any district. All of your unsecured creditors that file a claim would get the same pro rata distribution.
Your 10% payback gets equally distributed to all of your unsecured creditors. You can not pick and choose who gets paid and who does not.
With about $140k of student load debt between my wife and I, this would be awesome. Unfortunately it simply does not work like that.
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