Find the best financial services for you at: SMARTFINANCESOLUTIONS.NET - Will my student loan balance grow in a Chapter 13 bankruptcy? - We have a confirmed Ch 13. I would like to ask our attorney to file a motion to pay our student loan outside of the plan,instead of within the plan. Initially when we filed the plan, the attorney's office file the loan as a priority claim. The trustee said no, it is unsecured. This means that Sallie Mae will get just a few dollars each month, not enough to cover our monthly payment or interest, but because it's a student loan it will not be considered discharged when we complete our payment plan. The logic the courts have used is besides me on this one- it can't be considered priority and non-dischargeable, but it should be considered unsecured with special status and is still non-dischargeable. It makes no sense for the debtor.

Will the interest continue to accrue on this loan while we are in our payment plan? It seems wrong, and goes against the whole point of the US bankruptcy protection code, to owe this debtor MORE after our bankruptcy discharge than we did going into the plan. Can we file to exclude this debt from our plan and pay it separately? -