Trustee's student loan disbursements?

[mike963]

We just got confirmed and I am trying to figure out how much of our student loans are going to be paid off during the life of our BK. (our students loans are included in our plan)

The total we will pay in to our Ch. 13 is $154,000 - this is about 83% of our total claims.
Does this mean that 83% of our student loans will be paid off at the end of our BK? Or does the lien strip get paid off first then the unsecured split up the rest?
My lawyer did mention that student loans get paid the same as everyone else but, this is too vague for me.

Lien strip = 73000
Student loans = 56000
Other unsecured = 41000
Lawyer= 3000
Total claims = 173000

[ccfriend]

My student loans were sent to the Michigan Guaranty where they are now sitting for the duration of my plan. They were automatically placed in deferrement until I am done with the bankruptcy. Your student loans cannot be discharged in bankruptcy so even if some it paid on them during your plan you will still be responsible for the rest when your bk is over.

[mike963]

My student loans were sent to the Michigan Guaranty where they are now sitting for the duration of my plan. They were automatically placed in deferrement until I am done with the bankruptcy. Your student loans cannot be discharged in bankruptcy so even if some it paid on them during your plan you will still be responsible for the rest when your bk is over.

Thanks,
I am aware that they will not be discharged. I'm just trying to figure out how much of them will be paid off when we are done.
Did you include your student loans in your plan?

[SMinGA]

If $154k is the total you're paying into your plan - first the trustee takes 5-10% from each payment. (Varies by district.) So $138,600-$146,300 will be paid out.

I'm assuming you listed all the claims, so there are no secured/mortgage arrears/taxes, etc. The atty gets $3000 in full. Then the $170,000 in unsecured should each get a portion relative to the claim filed. So of the $135,600-$143,300 to creditors, about 43% to your 2nd mortgage company, 33% to your student loans, and 24% among other unsecured.

The student loans will continue to accrue interest though.

[mike963]

Thank you for doing all that math for me, it really clears things up. But, just to be sure- it sounds like your saying that the second mortgage gets treated as unsecured and doesn't get paid in full, right?
I know about the interest on the student loans I just wanted to get a ball park figure. It would have made a big difference if the second mortgage got preferential treatment.
By the way my trustee gets 6.8% However, my attorney said that this number goes up and down year to year.

If $154k is the total you're paying into your plan - first the trustee takes 5-10% from each payment. (Varies by district.) So $138,600-$146,300 will be paid out.

I'm assuming you listed all the claims, so there are no secured/mortgage arrears/taxes, etc. The atty gets $3000 in full. Then the $170,000 in unsecured should each get a portion relative to the claim filed. So of the $135,600-$143,300 to creditors, about 43% to your 2nd mortgage company, 33% to your student loans, and 24% among other unsecured.

The student loans will continue to accrue interest though.

[SMinGA]

Correct, 2nd/heloc creditor is just a general unsecured. The whole logic to stripping the lien is that there is not enough equity in the home to make even $1 of the 2nd/heloc a secured loan. So its officially converted to unsecured.

Sounds like we are in districts where trustees are on the low side of the fee scale. Mine is 5.4% - I hear many areas are at or close to the max.

[starr4law]

Check to make sure that the student loans filed a proof of claim. No proof, no payment. Usually they are pretty good about it, but once in awhile . . . Never hurts to ask or if your trustee has a website that lists who has filed proofs in your case, you can look there too.

[lrprn]

We just got confirmed and I am trying to figure out how much of our student loans are going to be paid off during the life of our BK. (our students loans are included in our plan)

By the end of your plan, your student loan creditor will have received the same % payback as all your other unsecured creditors who filed claims. Whatever is left is yours to pay in full after discharge.

[mike963]

Check to make sure that the student loans filed a proof of claim. No proof, no payment. Usually they are pretty good about it, but once in awhile . . . Never hurts to ask or if your trustee has a website that lists who has filed proofs in your case, you can look there too.

Yes they were the first ones to file.