Ford v. Student Loan Guarantee Found. of Arkansas

269 B.R. 673 (8th Cir. 2001) ; Clearinghouse Number: 54308

Description

Bankruptcy Appellate Panel for Eighth Circuit Affirms Discharge of Student Loan Debt

Abstract

The Bankruptcy Appellate Panel for the Eighth Circuit affirmed the judgment discharging debtor-appellee’s student loan debt. Debtor-appellee, a 62-year-old woman filing a Chapter 7 petition, filed an adversary action in bankruptcy court to have her $73,000 in student loan debts discharged. Finding that failure to discharge the debt would impose an undue hardship on debtor-appellee, the bankruptcy court declared the debt dischargeable. Reviewing for clear error, the bankruptcy appellate panel applied the Eighth Circuit’s “totality of circumstances” test to determine undue hardship. Citing evidence in the record of debtor-appellee’s modest expenses, limited income, and deteriorating physical condition, the appellate panel affirmed the bankruptcy court’s finding of undue hardship.

Additional Information

Attorney Information
Docket Date
2001-11-21 00:00:00+00:00

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