By Cathy Moran, Esq. (Redwood City, CA) One of the cosmic ironies of our legal system is that it costs money to file bankruptcy. Bankruptcy gets you out of debt only if you have the money to file. The costs of bankruptcy include the filing fee collected by the court; the required credit counseling; and, if you’re smart, an experienced...
From the Editor – Classification
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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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