Trustee Cannot Require Debtor to Treat Nondischargeable Student Loan Debts in a Separate Class

By Gretchen D. Holland, Standing Chapter 13 Trustee for the Greenville/Spartanburg Division of South Carolina

The Bankruptcy Code does not – and thus a trustee cannot – require a debtor to treat nondischargeable student loan debts in a separate class from other general unsecured claims under § 1322(b)(1), even when including them all in the same pool will result in a stark imbalance in the payment of those claims. In re Wood, No. 18-31268-BPC, 2018 Bankr. LEXIS 3657 (Bankr. M.D. Ala. Nov. 19, 2018)

Background

Debtor’s chapter 13 plan had a pot . . .

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