article thumbnail

Chapter 13 Bankruptcy and Student Loans

Sawin & Shea

A trustee will be assigned to your case to collect payments and make recommendations to the court regarding plan approval. This stay prohibits creditors, including your student loan lenders, from contacting you to collect any debts. Your student loans will also still accrue interest during this time.

article thumbnail

Solvent Debtors Must pay the Contractual Post-Petition Interest Rate on Unimpaired Claims

ABI

the United States Court of Appeals for the Ninth Circuit held that solvent-debtors are required to pay unimpaired creditors their bargained for post-petition interest rate. [1] 7] Generally, under the Bankruptcy Code, once a debtor files for bankruptcy, an unsecured claim no longer accrues interest. [8]

Debtor 40
article thumbnail

SURVIVING FINANCIAL DISTRESS FROM COVID-19 IN THE RESTAURANT, BAR, AND SERVICE INDUSTRY

BN Lawyers

You should consider the expenses for furloughed employees against the good-will that may accrue for keeping them on staff. Low Priority: Unsecured Lenders and other Creditors. Unsecured lenders should generally be willing to defer payments. No Priority: Distributions to Equity.