Recently, a bankruptcy judge in Boston ruled that 11 USC 1322(b)(5) can be used for student loans that mature beyond the end of the Chapter 13 plan. This particular Code section is what Chapter 13 Debtors use to cure mortgage and car loans, but never used for unsecured debts.

Judge Feeney, of the Boston Bankruptcy Court ruled that once a student loan was eligible under 1322(b)(5), the non-discrimination provision regarding unsecured debts of the same class was inapplicable. The ramification of this decision, if adopted by other Courts, would allow a Chapter 13 Debtor to make full student loan payments and cure payments while paying little to nothing to other unsecured, non-priority creditors.

See the article titled “Curing and Maintaining Student Loan Arrears Under 1322(b)(5)” about the decision from the Philips Law Office.