In re Zeigafuse, No. 11-20854, 2012 WL 1155680, at *5 (Bankr. D. Wyo. Apr. 5, 2012) (McNiff)

Separate classification of continuing payment of long-term student loan “outside” plan unfairly discriminates when student loan creditor will receive 21% and general unsecured creditors only 1.2%; level payment plan would pay all unsecured creditors 19%. “This court . . . joins the majority view holding that §§ 1322(b)(1) and 1322(b)(5) must be read in conjunction with one another.” Applying the “four step test,” the “balancing test” and the “baseline test,” debtors failed to show a reasonable basis for the discrimination, debtors presented no evidence whether they could carry out their plan without the discrimination, Congress provided no priority of payment to student loans in Chapter 13 cases and debtors proposed no voluntary contributions to “square up” the disproportionate distribution.

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