For those debtors who cannot discharge their student loans in bankruptcy, it is important to pay as much as possible on the student loans while in Chapter 13 bankruptcy . One way a debtor can commit more of his/her income to repaying student loan debt while in Chapter 13 bankruptcy, is to repay the loans on their own instead of having the bankruptcy trustee pay on their behalf.
A debtor can simply have their bankruptcy attorney insert the following provision into their Chapter 13 bankruptcy plan:
"The debtor will continue to pay student loan payments out of his/her own pocket instead of having the bankruptcy trustee pay on his/her behalf."
Putting this provision into the debtor's Chapter 13 bankruptcy plan usually allows the debtor to pay more income towards the student loan debt than would be paid if it was handled by the bankruptcy trustee. The bankruptcy law allows debtors to continue to pay their student loans out of their own pocket; a method of paying that insures that the debtor will not owe accrued interest, saving money in the long-run.