From the Editor – Classification

By The Honorable William Houston Brown (Retired)

Separate classification and preferential treatment of student loan debt. The Chapter 13 trustee and debtors’ attorney attempted to change the traditional approach in the District, seeking approval of a permissible fair discrimination in favor of student loan debt in plans so long as the preferential treatment and discrimination was no more than 20%. The proposal was that plans would be confirmed without trustee objection if the unsecured creditors would receive no more than 20% less than they would have received in the absence of proposed discrimination. Reviewing case law . . .

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