From RI Lawyers Weekly:
A debtor need not repay her student loans where repayment would impose an undue hardship on her, the Bankruptcy Appellate Panel for the 1st U.S. Circuit Court of Appeals has decided.
The lender argued that the U.S. Bankruptcy Court judge who allowed the debtor’s student loan obligations to be discharged failed to take into account loan consolidation repayment options available under the William D. Ford Federal Direct Loan Program.
But the panel disagreed.
“[T]he bankruptcy court clearly stated that, despite the Debtor’s eligibility for the Ford Program, her ability to repay the debt was unrealistic in light of her age, inability to pass the Massachusetts bar examination, difficulty finding employment, and other burdens,” Judge Enrique S. Lamoutte wrote for the panel. “These circumstances are amply supported by the record and are appropriate factors to be considered under the totality of the circumstances test.”
The 24-page decision is In Re: Bronsdon, Denise Megan, Lawyers Weekly No. 03-013-10. The full text of the ruling can be found by clicking here.
Debtor Denise M. Bronsdon represented herself. John F. White of Massachusetts and Troy A. Gunderman of Minnesota represented the lender, Educational Credit Management Corp.