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Keywords: student loans . Chapter 13 plan .

Topic #52:: Student Loans: Discharge possible through plan confirmation and notice, without adversary proceeding

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Student Loans > Chapter 13 > Creditor Classifications & Discrimination

Student Loans: Discharge possible through plan confirmation and notice, without adversary proceeding

3 Cases , IssueID 52

Ch 7 Means Test
Form 22A, Line 53
Ch 13 Means Test
Form 22C Line 57

Topic Description:

While student loans are nondischargeable, and can only be discharged with a showing of undue hardship, occasionally a Chapter 13 plan will be approved that discharges a student loan, and if there is no objection, what happens when then plan is completed?

Lines of Cases:

A:

Plan that approved discharge of student loan is binding on creditor if creditor has proper notice

B::

No discharge of student loan where there was no adversary proceeding

C:

Adversary proceeding required, but discharge stands due to creditor's failure to object to plan after proper notice

  • Type A = Plan that approved discharge of student loan is binding on creditor if creditor has proper notice
  • Type B = No discharge of student loan where there was no adversary proceeding
  • Type C = Adversary proceeding required, but discharge stands due to creditor's failure to object to plan after proper notice
  • Type E = "Everything Else"
  • Cases for Zip
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Cases for Zip , California Northern District Bankruptcy Court

Supreme Court

� United Student Aid Funds Inc. v. Espinosa

US Supreme Court - 559 U.S. ___ - 2010-02-23 - 13 ,

Google ID#: 8660918976044810473
(Type C : Adversary proceeding required, but discharge stands due to creditor's failure to object to plan after proper notice )

Ninth Circuit Cases

� Espinosa v. United Student Aid Funds Inc.

9th Circuit - 553 F. 3d 1193 - 2008-10-02 - 13 ,

Google ID#: 8660918976044810473
(Type A : Plan that approved discharge of student loan is binding on creditor if creditor has proper notice )

SEE SUPREME COURT REVERSING IN PART... Our long-standing circuit law holds that student loan debts can be discharged by way of a Chapter 13 plan if the creditor does not object, after receiving notice of the proposed plan, Pardee, 193 F.3d at 1086, and that such notice is not constitutionally inadequate. In re Gregory, 705 F.2d at 1123.

Other Circuits

� In re Wright

Bankr. S.D. Ind. - 444 B.R. 883 - 2010-09-07 - ,

Google ID#: 11005358130151580456
(Type A : Plan that approved discharge of student loan is binding on creditor if creditor has proper notice )

Student loan discharge through plan confirmation where creditor did not object. However, court takes a "dim view" of such tactics.

� In re Wright

Bankr. S.D. Ind. - 444 B.R. 883 - 2010-09-07 - ,

Google ID#: 11005358130151580456
(Type A : Plan that approved discharge of student loan is binding on creditor if creditor has proper notice )

Student loan discharge through plan confirmation where creditor did not object. However, court takes a "dim view" of such tactics.

� United Student Aid Funds Inc. v. Espinosa

US Supreme Court - 559 U.S. ___ - 2010-02-23 - 13 ,

Google ID#: 8660918976044810473
(Type C : Adversary proceeding required, but discharge stands due to creditor's failure to object to plan after proper notice )

� Espinosa v. United Student Aid Funds Inc.

9th Circuit - 553 F. 3d 1193 - 2008-10-02 - 13 ,

Google ID#: 8660918976044810473
(Type A : Plan that approved discharge of student loan is binding on creditor if creditor has proper notice )

SEE SUPREME COURT REVERSING IN PART... Our long-standing circuit law holds that student loan debts can be discharged by way of a Chapter 13 plan if the creditor does not object, after receiving notice of the proposed plan, Pardee, 193 F.3d at 1086, and that such notice is not constitutionally inadequate. In re Gregory, 705 F.2d at 1123.

All Cases A to Z


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