Critical Case Comment

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee for the Middle District of Tennessee (Nashville)

In re Engen, 2016 WL 7243519, Docket No. 15-20184 (Bankr. D. Kan., December 12, 2016) (Berger)

The classification of student loan obligations in a Chapter 13 case is not necessarily prohibited, and it can assist debtors and implement the goals of the bankruptcy system, and thus can work a “fair” discrimination to pay student loans a distribution greater than other unsecured creditors in the plan.

Case Summary

Maureen and Mark Engen filed a Chapter 13 petition in . . .

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