i'm searching for some informations for a very good friend who filed chapter 13 about 9 months ago and who is facing soon difficulties making the monthly payments (she is under a special payment plan and soon the monthly payments are going up much). The main reason for chapter 13 was a student loan (about 53k) and she told me that such loans must be paid in any case. I was going through the petition (filed for the Western District of New York) and there are different categories listed SCHEDULE D - CREDITORS HOLDING SECURED CLAIMS SCHEDULE E - CREDITORS HOLDING UNSECURED PRIORITY CLAIMS SCHEDULE F- CREDITORS HOLDING UNSECURED NONPRIORITY CLAIMS but all her debts/loans are listed under Schedule F (unsecured nonpriority claims). Now I was wondering how that could be - that a student loan is concidered as unsecured. And specially would it be possible under these circumstances possible to change to chapter 7?
A student loan is listed as a general unsecured debt. While a Chapter 7 would discharge most, if not all, of his other Schedule F debt, it would not discharge the student loan debt. Your friend needs to talk to the office of student loan. I found that they are easy to talk to. If your friend really has difficulties in making payments, they can even give your friend deferment.
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