Positive DI, Negative PDI, Student Loan forbearnaces will be up.

[Bottie]

We have an appt to file chapter 13 with an attorney in a week. Looking ahead, I can see that we will have some +DI to put towards the plan. However, student loans once the forbearance expires in April will shoot the plan, creating a (-) Projected Income at that point.

One option is to file for Income Based Repayment (IBR) either before or during. The payment would be affordable but takes 30+ days for the loan holder to calulate.

The second option, is this possible: to file a plan with a + DI but -PDI for a shortened plan commitment? I live in Georgia.

[junquemayle]

My understanding is that student loans do not count as an expense for the purposes of DMI calculation - regardless of the status of the loan.

Also, our attorney told us that student loans count like regular unsecured creditors for the purpose of payback. That is, your student loan will receive the same percentage as your other unsecured creditors. However, unlike your other unsecured creditors, you will still be responsible for the unpaid amount after the plan is over. For us, we have ~$35,000 in student loans. We will be paying about 30% to unsecured, so By the end of our plan, we will still have ~$25k due.

[momofthree]

Even if you don't qualify for forebearance any longer outside of bankruptcy, once you file a ch.13, they will go back into forebearance while you are in the bankruptcy, which is why student loan payments do not count as an expense on your schedules. Most people are not allowed to pay anything to student loans while in a ch.13 plan (unless they scrimp on the side and send money in themselves--it is not an allowable expense). There are a few cases here and there that have been allowed to pay towards them, but they are usually in a high payback plan, and it is really not common.

[chicagoannie]

Even if you don't qualify for forebearance any longer outside of bankruptcy, once you file a ch.13, they will go back into forebearance while you are in the bankruptcy, which is why student loan payments do not count as an expense on your schedules. Most people are not allowed to pay anything to student loans while in a ch.13 plan (unless they scrimp on the side and send money in themselves--it is not an allowable expense). There are a few cases here and there that have been allowed to pay towards them, but they are usually in a high payback plan, and it is really not common.

Do those student loans accrue interest while they are in forbearance?

[momofthree]

Do those student loans accrue interest while they are in forbearance?

unfortunately, yes...