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Seeking Early Discharge from Chapter 13 With Only Student Loan Debt

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  • 09-30-2013, 12:10 PM
    Leighcr
    Seeking Early Discharge from Chapter 13 With Only Student Loan Debt
    My question involves bankruptcy in the state of: WISCONSIN

    I am about a year and a half into a chapter 13 and my tax refunds have made substantial inroads into paying the plan off in its current form. I was under the median income at the time of the filing and am wondering if there is a scenario where the case could be discharged early if the plan were paid off in advance?

    The only thing that would remain unpaid would be student loans which are not dischargeable anyway. All other secured and unsecured debt would be paid at 100% even though the plan only calls for 1% payment to unsecured.
  • 09-30-2013, 01:31 PM
    Disagreeable
    Re: Can Chapter 13 Discharge if Only Student Loans Are Owed
    You can certainly discuss the issue with the trustee. The court looks favorably on people who pay off early. It makes the judges feel warm and fuzzy to realize they actually helped someone who is trying.
  • 09-30-2013, 02:00 PM
    despritfreya
    Re: Seeking Early Discharge from Chapter 13 With Only Student Loan Debt
    If you were a below median income filer your "commitment period" is 36 months. If you are looking for a 13 discharge you must remain in the 13 for at least 36 months or payment of all allowed claims in full, whichever happens first. The question is. . . if you qualified for a Chapter 7 why did you elect to file a 13?

    Please note. . . If your student loan lenders filed timely claims they will receive their pro rata share of whatever is paid to unsecured creditors. No allowed unsecured creditor will be paid in full unless all allowed unsecured creditors are paid in full because of the pro rata distribution. The more you pay in, the more each gets based upon the creditor’s percentage of total unsecured debt. Now, if the student loan lenders failed to file claims or for some reason the Order confirming your Plan discriminates against the student loans (not likely), your indication that all other unsecured creditors will be paid in full by the tax refunds would make sense and - just maybe you can close your case in less than 36 months.

    Des.
  • 09-30-2013, 02:09 PM
    Disagreeable
    Re: Seeking Early Discharge from Chapter 13 With Only Student Loan Debt
    des is the bankruptcy expert. I think he is a... a....a.... Debt Relief Agency.
  • 09-30-2013, 02:48 PM
    Mr. Knowitall
    Re: Seeking Early Discharge from Chapter 13 With Only Student Loan Debt
    Quote:

    Quoting despritfreya
    View Post
    If you were a below median income filer your "commitment period" is 36 months. If you are looking for a 13 discharge you must remain in the 13 for at least 36 months or payment of all allowed claims in full, whichever happens first. The question is. . . if you qualified for a Chapter 7 why did you elect to file a 13?

    I suspect it was to get temporary relief from the student loan debt, as a Chapter 7 would have discharged other debts but provided no relief on the student loans. If that was not the purpose, I'm short of ideas.
  • 09-30-2013, 05:02 PM
    despritfreya
    Re: Seeking Early Discharge from Chapter 13 With Only Student Loan Debt
    Quote:

    Quoting Mr. Knowitall
    View Post
    I suspect it was to get temporary relief from the student loan debt, as a Chapter 7 would have discharged other debts but provided no relief on the student loans.

    Yes, that would make sense. Good catch.

    Des.
  • 10-07-2013, 11:16 AM
    Leighcr
    Re: Seeking Early Discharge from Chapter 13 With Only Student Loan Debt
    Actually it is because we filed a chapter 7 in 2007 and the chapter 13 was the only way to stop a repossession of a vehicle that we were 45days behind on...missed a scheduled payment on the agreement we set up and they decided to reposses even though we were behind less than 600 dollars. The problem came along that once they repossesed that 600 dollars became 2500 to get the car back so we did what we had to do even though our situation wasnt too horrible anywhere else
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