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Must all unsecured debts be treated alike under a Chapter 13 plan?

April 26, 2017Chapter 13 debts Plan treated unsecured

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Must all unsecured debts be treated alike under a Chapter 13 plan?

4 Answers

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No. If there is a reasonable basis for doing so, unsecured debts (or claims) may be divided into separate classes and treated differently. It may be possible, therefore, to pay certain unsecured debts in full, while paying significantly less on others.

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No. If there is a reasonable basis for doing so, unsecured debts (or claims) may be divided into separate classes and treated differently. It may be possible, therefore, to pay certain unsecured debts in full, while paying significantly less on others. The reasonable basis for disparate treatment is difficult to show.

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No. If there is a reasonable basis for doing so, unsecured debts (or claims) may be divided into separate classes and treated differently. It may be possible, therefore, to pay certain unsecured debts in full, while paying little or nothing on others.

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ANSWER – No. If there is a reasonable basis for doing so, unsecured debts (or claims) may be divided into separate classes and treated differently. It may be possible, therefore, to pay certain unsecured debts in full, while paying significantly less on others.