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§ 523(a)(8)

Burton v. Educ. Credit Mgmt. Corp. (In re Burton)

Ruling
Student loans were deemed nondischargeable since debtor failed to show that debtor's mental inllness was likely to prevent future employment or that debtor had made a good faith effort to repay the loans.
Procedural posture

Plaintiff bankruptcy debtor brought an adversary proceeding against defendant student loan creditors, seeking to discharge his student loans based on undue hardship pursuant to 11 U.S.C. § 523(a)(8), due to mental illness and his inability to maintain employment. The bankruptcy court conducted a trial.

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opinion summary, case decided on January 11, 2006 , LexisNexis #0406-126

Gharavi v. U.S. Dept. of Educ. (In re Gharavi)

Ruling
Court discharged most of the debtor's student loan debt due to undue hardship related to the debtor's multiple sclerosis.
Procedural posture

Plaintiff debtor filed an adversary proceeding seeking the discharge of her student loans pursuant to 11 U.S.C. § 523(a)(8). Defendant creditors defended the complaint by arguing that the debtor had resources to pay the obligation. The court held an evidentiary hearing.

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opinion summary, case decided on January 10, 2006 , LexisNexis #0206-112

Lawrence v. Direct Loan (In re Lawrence)

Ruling
Student loan debt was deemed nondischargeable since debtor showed no evidence that repayment would impose undue hardship.
Procedural posture

Plaintiff debtor filed an adversary proceeding against defendant student loan lenders to determine the dischargeability of the debtor's student loan debt based upon undue hardship, pursuant to 11 U.S.C. § 523(a)(8).

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opinion summary, case decided on January 04, 2006 , LexisNexis #0506-014

Educ. Credit Mgmt. Corp. v. Frushour (In re Frushour)

Ruling
Discharge of debtor's student loans due was overturned since the debtor had failed to show undue hardship
Procedural posture

Appellant student loan management company appealed from the order of the district court, which held that appellee debtor satisfied the undue hardship requirement in 11 U.S.C. § 523(a)(8) and was entitled to discharge her student loans.

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on December 30, 2005 , LexisNexis #0106-117

Mosko v. Am. Educ. Serv. (In re Mosko)

Ruling
One debtor had student loan debt deemed dischargeable due to undue hardship while other debtor received only partial discharge.
Procedural posture

Plaintiff debtors brought an adversary complaint to determine the dischargeability of their student loan debts pursuant to 11 U.S.C. § 523(a)(8). Defendant, the successor to the lender, opposed dischargeability.

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opinion summary, case decided on September 29, 2005 , LexisNexis #0106-056

Tift County Hosp. Auth. v. Nies (In re Nies)

Ruling
Court denied hospital creditor's motion to declare loan to doctor debtor in exchange for the doctor providing four years of service as nondischargeable since the loan was not an education loan.
Procedural posture

An adversary proceeding was before the court on a motion for summary judgment filed by plaintiff creditor through which it sought a judgment that a debt owed to it by defendant debtor was a nondischargeable consolidated student loan under 11 U.S.C. § 523(a)(8). Debtor opposed the motion.

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opinion summary, case decided on September 20, 2005 , LexisNexis #0106-055

Lorenz v. Am. Educ. ServicesPennsylvania Higher Educ. Assistance Agency (In re Lorenz)

Ruling
Student loans were deemed dischargeable due to undue hardship for a debtor who faced having to switch careers to increase income.
Procedural posture

Plaintiff debtor filed an adversary proceeding against defendant creditor seeking a determination that the debtor's student loans were dischargeable due to "undue hardship" under 11 U.S.C. § 523(a)(8). These student loans were used to finance the debtor's podiatry school education. Due to changes in the field, the debtor abandoned podiatry and chose instead to pursue a career as a registered nurse. The debtor was unemployed at the time of trial.

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opinion summary, case decided on June 17, 2005 , LexisNexis #0106-054