The effect out-of disallowance significantly less than § 502(b)(2) “should be to insure one to financial institutions besides [the newest creditor holding the latest education loan] found its great amount of your own home
9 See § 346.step 1 [ Student loans ] § 158.dos Student loans. Come across, age.grams., Leeper v. Pennsylvania High Educ. Guidance Institution, 44 F.three-dimensional 98 (three dimensional Cir. 1995) (Implementing Bruning v. United states, 376 U.S. 358, 84 S. Ct. 906, 11 L. Ed. 2d 772 (1964), unmatured postpetition attention to the good nondischargeable student loan isn’t allowable and endures discharge from inside the a chapter 13 circumstances.); Within the re also Hamilton, 179 B.R. 749 (Bankr. S.D. Ga. 1995) (Harmony regarding education loan could well be nondischargeable within completion of repayments under Chapter thirteen bundle notwithstanding one to Institution regarding Education unsuccessful in order to timely file an evidence of claim as well as the debtor registered a proof claim on the part of the Agency for the an enthusiastic matter debated because of the Institution.); Ridder v. Higher Ponds Highest Educ. Corp. (During the re also Ridder), 171 B.Roentgen. 345, 346–47 (Bankr. W.D. Wis. 1994) (“Even when states for postpetition appeal is disallowed during the personal bankruptcy, immediately after case of bankruptcy the latest owner off a beneficial nondischargeable debt will get gather out of the fresh new debtor physically. Bruning v. All of us, 376 U.S. 358, 84 S. Ct. 906, 11 L. Ed. 2d 772 (1964). . . . As the personal debt was not released, Great Lakes will get collect the fresh postpetition desire regarding [the latest debtor] myself. . . . The fact that Great Lakes’ claim to possess postpetition focus might have been disallowed has nothing to do with if or not postpetition attention try dischargeable.”); During the lso are Shelbayah, 165 B.R. 332 (Bankr. Letter.D. Ga. 1994) (Unmatured postpetition attention to the a student-based loan isn’t an allowable allege under § 502(b)(2), and you may like notice will continue to accrue from inside the Part 13 case. ).
All unmatured postpetition focus gets a similar nondischargeable profile as the the underlying education loan around § 1328(a)
10 Get a hold of lower than contained in this area to check out §§ 155.dos [ Long-Identity Expenses ] § 88.nine Much time-Identity Costs, 159.step 1 [ A proposal: Much easier Legislation to have Group off Unsecured Says ] § A proposal: Smoother Guidelines having Classification out-of Unsecured States and you may 346.1 [ College loans ] § 158.2 Student loans. Discover, elizabeth.g., In the re Williams, 253 B.R. 220, 232 (Bankr. W.D. Tenn. 2000) online payday loans in Richmond Hill (“This legal will not show Chapter 13 plans that provides for the fee of great interest so you’re able to education loan loan providers, however for other unsecured loan providers.”); For the re also Shelbayah, 165 B.Roentgen. 332, 337 (Bankr. Letter.D. Ga. 1994) (Unmatured postpetition focus to the an educatonal loan is not deductible in a section thirteen situation not as much as § 502(b)(2), such as for example attract continues to accrue into the Section thirteen instance, while the accruing desire provides the exact same nondischargeable character while the underlying education loan lower than § 1328(a). ”). Agreement Leeper v. Pennsylvania Higher Educ. Guidelines Company, 49 F.three dimensional 98 (three-dimensional Cir. 1995); Inside re Hamilton, 179 B.Roentgen. 749 (Bankr. S.D. Ga. 1995); Ridder v. High Lakes Highest Educ. Corp. (Into the re Ridder), 171 B.Roentgen. 345 (Bankr. W.D. Wis. 1994).
eleven Into the re Boggan, 125 B.R. 533 (Bankr. Letter.D. Sick. 1991). Accord Within the lso are Gregg, 179 B.R. 828, 830 (Bankr. Age.D. Tex. 1995) (Debtor normally by themselves identify about three student loans to have payment completely in which other unsecured allege holders would-be paid merely .74%. “Every student education loans in this situation are nondischargeable below eleven U.S.C. § 523. Therefore, another type of classification of these states doesn’t unfairly discriminate up against additional unsecured loan providers.”). See in addition to From inside the re Dillon-Bader, 131 B.R. 463 (Bankr. D. Kan. 1991) (Into the perspective of great-believe objection so you can confirmation, that isn’t poor to own a chapter 13 borrower so you can individually identify Heal financing for a hundred% payment when you find yourself paying almost every other unsecured claim proprietors ten% given that Heal finance have to be paid in full pursuant so you can 42 U.S.C. § 294f(g).).