New Department of Education regulation, effective July 1, to give debtors in Chapter 13 cases loan forgiveness credit under income-driven repayment plans
Effective July 1, 2024, a new Dept. of Education regulation gives debtors loan forgiveness credit under income-driven repayment plans when they are in chapter 13 cases. I added an article about it on NCLC’s digital library (you do not need to be an NCLC subscriber) that you can get here: https://library.nclc.org/article/new-rule-gives-chapter-13-bankruptcy-debtors-credit-toward-student-loan-forgiveness
I should mention that even though this regulation was not dependent upon other changes that the Department made to IDR plans, including the new SAVE plan, it could be affected by a legal challenge that has been filed against the SAVE changes (that also are to go into effect on July 1). If the court does enter an injunction barring implementation of SAVE, hopefully it will be targeted and not include the bankruptcy provision.