Why can’t I make payments to my Student Loan while in Chapter 13 case?
A student loan is an unsecured debt that is not dischargeable in Chapter 7 or 13 Bankruptcy. However, if you file a Chapter 13 bankruptcy case then you must cease all payments for your student loan until after you received you discharge. Once the creditor assigned to the student loan is noticed of the Chapter 13 bankruptcy filing then the loan should automatically deferred until discharge or dismiss of your bankruptcy case.
If payments are made on student loan during Chapter 13 then it is considered showing preferential treatment to an unsecured creditor. The Chapter 13 Trustee could enforce that if you continue to make these payment then you are obligated to pay 100% back to all your unsecured claims filed. In many cases, this would cause a substantial increase in your monthly trustee payment.
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