Supreme Court rules that Chapter 13 plans that discharge student loans are binding even if there were legal errors in the process

Written by admin on April 3rd, 2010

Recently in United Student Aid Funds v. Espinoza, 08-1134, the Supreme Court Ruled that a Chapter 13 plan is binding on a creditor with actual notice even if it is legally defective. In Espinoza the Court ruled that the plan was binding even though a separate lawsuit should have been filed. The main lesson for creditors and benefit for debtors is that confirmed Chapter 13 plans are binding even if there are procedural irregularities. This is good for us!

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