STUDENT LOAN DISCHARGE

By Michaela M. White, Professor of Law, Creighton Law School

History

The Bankruptcy Code permits debtors to discharge prepetition debts and at one time, this discharge included student loans. Today, student loans are dischargeable in bankruptcy only in rare (and highly unfortunate) circumstances.

Congress made student loans nondischargeable in 1976, save for a narrow set of exceptions, in the belief that student-loan debtors systematically abused the bankruptcy system by filing bankruptcy shortly after graduation and seeking a discharge of student loans without a good faith attempt at repayment. At one time section 523 . . .

It looks like you are not signed in or registered! This content is only available to members.

Or Sign In Below:

No Author Biography has been linked to this Article.

Critical Case Comment–Should’a Returned the Car

Henry E. Hildebrand, III

January 8, 2023

Post-petition repossession of debtor’s automobile, deliberate indifference to debtor’s request for return and ignoring hearings before the Court merit not only award of damages for violation of the stay but substantial punitive damages. (Bonapfel) In re Hamby, 2022 WL 17428947 (Bankr. N.D. Ga. November 29, 2022) Case Summary Cole Hamby purchased a 2012 GMC Sierra from Everybody Rides Auto Sales....

Members

The Hanging Paragraph – Hanging on Every Word Part 2 of 4

June 21, 2020

By Anthony J. Gomez, CPA, former extern to the Honorable John P. Gustafson, Northern District of Ohio at Toledo III. Applying the Hanging Paragraph a. Application of the Hanging Paragraph – Timing of Debt In order for the hanging paragraph to apply, the debt must be secured by a purchase money security interest (“PMSI”) in either: 1) a motor vehicle...

Members

From the Editor – Discharge Injunction

May 31, 2020

By The Honorable William Houston Brown (Retired) Only bankruptcy court issuing discharge order can enforce injunction. The Fifth Circuit held that only the bankruptcy court issuing a discharge order has authority to enforce the discharge injunction. The opinion reviews pre-2005 Code provisions and current 28 U.S.C. § 1963, citing other Circuits that “have insisted on a return to the bankruptcy...

Members

Recent Cases Navigate Retirement Account Exemptions

Karen Jolley

February 11, 2024

“Several recent bankruptcy cases have considered the circumstances under which funds held in, derived from, or contributed to a retirement account may be exempt from the bankruptcy estate.”

Members

Sixth Circuit Selects Douglas L. Lutz as Bankruptcy Judge for the Eastern District of Kentucky

The Academy

April 28, 2024

The Circuit Executive for the Sixth Circuit announces that the U.S. Court of Appeals for the Sixth Circuit has selected Douglas L. Lutz as Bankruptcy Judge for the Eastern District of Kentucky to fill the vacancy created by the retirement of Bankruptcy Judge Tracey N. Wise. He took the oath of office on April 19, 2024.

Critical Case Comment – Creditor Not Required to Dismiss Prepetition Nonbankruptcy Action

November 14, 2021

By Henry E. Hildebrand, III, Chapter 13 Standing Trustee for the Middle District of TN (Nashville) The automatic stay does not require a creditor pursuing a prepetition nonbankruptcy court action to dismiss that action once a bankruptcy case is filed; requesting continuances and attending status conferences do not constitute “continuation” of the prepetition action for purposes of the automatic stay....

Members

When $400 Emergency Pushes You Over the Edge

September 8, 2019

By Cathy Moran, Esq. (Redwood City, CA) The Federal Reserve reported that 40% of Americans couldn’t meet a $400 emergency without borrowing. A significant slice of them couldn’t pay it at all. So, a Bloomberg economist devoted his column to deconstructing how the press and political figures, in his opinion, misused that finding. OMGoodness. The guy was too caught up...

Post-Petition Causes of Action, Inheritances and Windfalls Are Property of the Estate and Must Be Reported to the Trustee – Part 1 of 5

July 14, 2019

By John P. Gustafson, United States Bankruptcy Judge, Northern District of Ohio, Western Division A. Property Acquired After The Filing Of The Chapter 13 Case: The Different Approaches. 1. Property Acquired Post-Petition vs. Property “Vesting In The Debtor”. Click here for Part 2 The broad issue of what becomes property of the Chapter 13 estate post-petition involves consideration of two...

Members

2022 Bankruptcy Procedure Year in Review: Revised Statute and Rules and Selected Cases – Part 4 More on Arbitration Procedure

Lawrence R. Ahern, III

January 15, 2023

Introduction This series reviews developments in bankruptcy procedure during 2022. Amendments to 16 rules and new one new rule took effect December 1, 2022. Many reflected changes necessitated by the Small Business Reorganization Act of 2019 (SBRA),1 and have been in place in the same or similar form on an interim basis since that legislation took effect.

Members

Don’t Be Dismissive – Rule 41

Cathy Moran

August 6, 2023

I was the third attorney on this lien avoidance matter. Instead of it being “third time’s the charm”, it came close to being “three strikes and you’re out.” All because of FRBP 7041. This was the set up: debtor’s original counsel filed a number of lien avoidance actions, including the one against a landlord with a large default judgment. The...

Members