General Unsecured?

[mathom1]

All,
Need some assistance deciphering the Listing of Claims. We are in a 5 year plan / Chap 13. Our question is ...at the end of the 5 year plan do the creditors listed as "General Unsecured" become null & void (paid in full, we no longer owe them.)? Where as the student loans, auto, etc would still be our responsibility


GENERAL UNSECURED
GENERAL UNSECURED
GENERAL UNSECURED
GENERAL UNSECURED
GENERAL UNSECURED
GENERAL UNSECURED
GENERAL UNSECURED
GENERAL UNSECURED
GENERAL UNSECURED

STUDENT LOAN
STUDENT LOAN
AUTOMOBILE
GENERAL UNSECURED
MORTGAGE ARREARS
AUTOMOBILE
STUDENT LOAN

[lrprn]

Our question is ...at the end of the 5 year plan do the creditors listed as "General Unsecured" become null & void (paid in full, we no longer owe them.)? Where as the student loans, auto, etc would still be our responsibility.

That's correct. All unsecured creditors that don't file claims are wiped out in full, and all unsecured creditors that did file claims are paid their allowed % and then any remaining debt is wiped out in full.

Student loans - both private and federal - are yours to pay in full after discharge. There are a very few exceptions - unless you are completely and permanently disabled or can prove that paying the SLs back will significantly compromise your being able to live (called "undue hardship"). Both are incredibly difficult to prove in court. The bk law specifically prevents a SL's discharge, even though each one is technically an unsecured loan.

There are two proposed bills about making private SLs dischargeable that are under consideration in the Congress right now http://www.nextstudent.com/student-l...ankruptcy.aspx , but there's no guarantee either can get out of committee and then pass both House and Senate. Who knows what the timeline might be either. Could be months, could be years, could be never.