Bankruptcy Judge – “This Student Loan Case Fits the Definition of Insanity”

In Goodvin v. Educational Credit Management Corporation, Judge Dale Somers, a Kansas bankruptcy judge, began his opinion with these words: “This student loan case fits the definition of insanity.” Judge Somers went on to chronicle the story of Jeffrey Goodvin. Mr. Goodvin attended Wichita State University for four years (1982-1986) but did not obtain a … Read more

Bankruptcy Judges Eliminates Federal Student Loans Without IDR First

Seth Koeut was born in Cambodia and came to the United States as a child. Like many immigrants, he applied himself energetically to obtain a better life. He graduated 6th in his high school class and went on to earn two bachelor’s degrees from Duke University. Mr. Koeut then went to medical school and received … Read more

A Bankruptcy Court Eliminates Grandmother’s Student Loans

Between 2006 and 2015, Jamie Mudd took out 41 student loans to attend Heald College, a for-profit institution, and San Joaquin Delta College, a public institution. In 2015, she rolled these loans into two consolidated federal loans, totally about $72,000. Mudd put her student loans into an income-based repayment plan (IBRP) that established her monthly … Read more

Student Loan Servicer Hit With Big Contempt Sanction

In September 2020, Bankruptcy Judge Martin Glen slapped a huge contempt penalty on Great Lakes Educational Loan Servicers–$378,629.62! Why? Because Great Lakes repeatedly refused to comply with Judge Glen’s directives in a student-loan bankruptcy case. Leary v. Great Lakes Educational Loan Servicers: The facts In 2015, Sheldon Leary filed an adversary action in a New … Read more

Judge Grants Partial Discharge of Private Student Loan Debt

Mendenhall v. Navient Corporation: A $76,000 student-loan debt grows fivefold In 2007, Steven Mendenhall obtained a bachelor’s degree in film and video production from Brooks Institute of Photography, a for-profit college in California, which later closed. To finance his studies, Mendenhall took out about $75,000 in federal student loans and $76,000 in private loans from … Read more

ECMC – Your Student Loans are a Life Sentence

The U.S. Department of Education and Educational Credit Management Corporation (ECMC), DOE’s ruthless sidekick, don’t want anyone to get bankruptcy relief. This has been DOE’s policy for many years. Let’s take a look at Mosley v. Educational Credit Management Corporation, decided by the Eleventh Circuit back in 2007. As we will see, Mosley was clearly … Read more

Williams v. U.S. Department of Education: How does someone run up $400,000 in student-loan debt?

In Greene v. U.S. Department of Education, Judge Richard Posner, a universally esteemed jurist, remarked that the criteria for determining “undue hardship” in student-loan bankruptcy cases are complex. Nevertheless, Judge Posner observed, “[t]he size of the debt is relevant–the larger it is, the more likely that imposing full liability on the debtor will produce an … Read more

Hlady v. Educational Credit Management Corporation: Another Heartless Bankruptcy Judge Denies Relief to a Distressed Student-Loan Debtor

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Cherie Ann Hlady graduated from Hofstra Law School in 2006. She passed the New York bar exam and began practicing law. Unfortunately, Hlady could not make ends meet as a practicing lawyer. Ten years after getting her law degree, she filed for bankruptcy. Hlady took out student loans totaling $40,000 to finance her legal education, … Read more

The Best List of Private Student Loans to Bankrupt

Mark Kantrowitz from Private Student Loans Guru recently wrote an article for Forbes – How To Bankrupt Your Student Loans. The article is great but it contains the best list of private student loans that are not qualified education loans and should be able to be discharged in bankruptcy as I describe in this post. … Read more

An Example Why Private Student Loan Debt in Bankruptcy is Difficult

Just by looking at the facts surrounding dealing with private student loans and bankruptcy discharge, it appears more private student loans should be eligible for elimination as they are not protected. But lenders have either taken to fighting hard to prevent discharge or smaller lenders seem to quietly give up and let the debt be … Read more

Private Student Loans Under the Bankruptcy Microscope for This

An avenue of inquiry that is being pursued in an ongoing bankruptcy adversary proceeding might help to bring some clarity to what is the actual cost of attending a school where student loans are utilized. The court arguments are getting into the weeds, and that’s okay. Every nook and cranny is being evaluated to reach … Read more

National Collegiate Student Loan Trust Bankruptcy Arguments Getting Sharp

A group of attorneys are fighting the good fight in a case involving another stinking National Collegiate Student Loan Trust case. The arguments about why these particular private student loans should be discharged in bankruptcy have been sharpened through several cases and litigation. When I read the summary, in this case, it seemed that the … Read more

Bankruptcy Judge Discharges All NCSLT Student Loans

Here is a very interesting bankruptcy case from earlier in 2020. Judge Jennemann had no patience for National Collegiate Student Loan Trust and eliminated the private student loans in full. She also awarded attorney fees to the consumer as well. This case shows, if a creditor claims your private student loans are exempt from discharge … Read more