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§ 1322(b)(10)

In re Stull

Mar
27
2013
Ruling
Confirmation of above median debtor's plan denied due to proposal to pay interest on unsecured student loan debt without paying other unsecured creditors in full.
Procedural posture

An above-median income debtor filed a petition under chapter 13 of the Bankruptcy Code and proposed a plan for paying his creditors that treated his nondischargeable student loan debt more favorably than his other unsecured creditors by paying it in full with interest over the plan's duration. The chapter 13 trustee filed an objection to confirmation of the debtor's plan.

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Consumer opinion summary, case decided on March 27, 2013 , LexisNexis #0613-067
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In re Webb

Feb
22
2007
Ruling
Direct payment to student loan creditors allowed under plan for benefit of unsecured creditors.
Procedural posture

The debtors moved for confirmation of their chapter 13 plan in which they proposed to make regular monthly payments directly to their student loan creditors with a one percent payout to all other unsecured creditors. The chapter 13 trustee filed objections to confirmation on the grounds that the direct payments to the student loan creditors discriminated unfairly against the other unsecured creditors in violation of 11 U.S.C. § 1322(b)(10).

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opinion summary, case decided on February 22, 2007 , LexisNexis #0507-084
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In re Freeman

Dec
22
2006
Ruling
Plan could include interest payments on unsecured nondischargeable debt.
Procedural posture

The debtor's proposed chapter 13 plan provided, inter alia, that the debtor would continue to maintain direct payments on her unsecured student loan debt. The chapter 13 trustee objected to confirmation of the proposed plan on the ground that the plan violated 11 U.S.C. § 1322(b)(10), which prohibited payment of postpetition interest on an unsecured, non-dischargeable debt unless the debtor proposed to pay all other allowed claims in full.

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opinion summary, case decided on December 22, 2006 , LexisNexis #0307-080
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