11 U.S.C. §1322; Confirmation of Plan; Discrimination of Claims
In re Mulkey, 2005 Bankr. LEXIS 2188, Case No. 04-81390 (Bankr. N.D. Ga. September 28, 2005)(Massey)
Debtor proposed a Chapter 13 plan that would pay 100% of unsecured nondischargeable student loan claims and 1% of other unsecured claims. The court stated that while it may be acceptable to propose a plan that discriminates against some creditors, it is no acceptable to discriminate solely for the purpose of preferring non-dischargeable debts. Debtors’ arguments that their fresh start would be impeded if they could not prefer the student loan creditors, and that each class of claims would receive at least as much as they would in a Chapter 7, were not persuasive. Confirmation of Debtors’ plan was denied.
