Special Class Unsecured Claims

[StevieD]

Can anyone provide an explanation of how "Special Class Unsecured" claim actually works?

It is listed on my NDC reports with 0% Of Claim Amount and $12,000 Scheduled Amount. I have AES/PHEA listed separately as an unsecured claim for approx. $22,000.

Will this amount be paid prior to the other unsecured creditors? Additionally, how will the remaining balance be calculated after the conclusion of the discharge process?

[lrprn]

From http://72.14.203.104/search?q=cache:...s&ct=clnk&cd=1 - page 16:
"Special class: The class of "special class" claims shall comprise those claims that would otherwise be unsecured claims but that the Debtor(s) has elected to pay in full despite the fact that unsecured claims are not paid in full. Such claims include, but are not limited to, claims arising out of consumer debts for which any individual is liable with the Debtor by way of co-signature, guarantee, endorsement or otherwise ("co-signed debts"), claims based on NSF (non-sufficient funds) checks (or any other claims which might result in criminal prosecution), and student loans."

When the lawyer-ese dust settles, basically a special class unsecured claim is an unsecured debt that the debtor (you in this case) is required to pay in full because the law doesn't allow the debt to be discharged through bankruptcy or decides to pay in full to protect co-debtors.

Is the "AES/PHEA" you mentioned a student loan or loans through American Educational Services? (And should 'PHEA' be 'PHEAA'?) Student loans are the perfect example of a special class unsecured claim.

fyi...Claims are paid out by the trustee in the following order: priority, secured, special class unsecured, regular unsecured.

Are you working with a lawyer, StevieD? Which chapter are you hoping to file?

[StevieD]

Thanks for the response. The "AES/PHEA" is a student loan. The balances for most of my secured loans are almost complete. The "special class unsecured" will be next in priority to be paid.

We are currently in month 22 of our Ch. 13. Expect to be complete by August, 2007.