Defendants were awarded summary judgment and the student loan debt owed by Plaintiff Kidd was deemed non-dischargeable. Defendants established that Plaintiff had not made good faith efforts to repay the loan, the third prong under the Brunner undue hardship test. The Court considered Plaintiff’s failure to diligently search for work, failure to minimize expenses, incurring discretionary expenses while not making loan payments, never making a student loan payment, filing bankruptcy shortly after she received loan concessions through a state court suit, and not presenting evidence of seeking alternative repayment options.
Plaintiffs did not contest the facts but sought an equitable exception to the application of Brunner and the Court’s previously ruling that these debts qualified as student loan debts under § 523(a)(8)(A)(i). (Docket No. 61). Plaintiffs asserted that a material dispute of fact existed as to the amount of the debt owing, but Defendants did not seek a sum certain judgment. Instead, Defendants merely sought a non-dischargeability determination.
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Honorable Mary Grace Diehl (Recall)
Debtor’s motion to assume an unexpired lease was granted over landlord opposition. Debtor’s proposal to cure the pre-petition default with cash installments funded from Debtor’s managing member over a 12-month period was determined to satisfy § 365(b)(1)(A)’s requirement of adequate assurance of a prompt cure. The term of the lease and Debtor’s principal’s net worth contributed to the ruling. Additionally, Debtor also sufficiently provided adequate assurance of future performance as required by § 365(b)(1)(c) based on Debtor’s principal’s performance of paying the post-petition lease payments, his promise and ability to pay going forward, the below-market rate of the lease, and fact specific circumstances impeding Debtor’s ability to generate revenue. Because Debtor satisfied § 365(b)(1)’s requirements, it could assume the lease.
Defendants were awarded summary judgment because the stipulated facts for each debtor showed that they could not meet the undue hardship standard applicable in this circuit - the Brunner test. Plaintiffs did not contest the facts but sought an equitable exception to the application of Brunner and the Court’s previously ruling that these debts qualified as student loan debts under § 523(a)(8)(A)(I). (Docket No. 61). Plaintiffs asserted that a material dispute of fact existed as to the amount of the debt owing, but Defendants did not seek a sum certain judgment. Instead, Defendants merely sought a non-dischargeability determination.
Debtor’s post-confirmation motion to strip a wholly unsecured second lien on real property was denied based on the res judicata effect of a confirmed Chapter 13 plan pursuant to § 1327.
(Trustee may abandon property of the estate irrespective of possible tax consequences to Debtor)
(Dismissed: state law claims preempted by Social Security Act (Medicare) and Debtor failed to exhaust administrative remedies)
(Truth-in-Lending: Bankruptcy court has authority under §1635 of Truth in Lending Act to condition rescission of lien upon return to the creditor of the net balance due on the loan secured by the lien)
Honorable Paul W. Bonapfel
Order granting motion for default judgment determining that debtor’s obligation to pay attorney’s fees for former spouse pursuant to divorce decree is “support” and excepted from discharge pursuant to 523(a)(5).
Court denies, without prejudice, application for unclaimed funds in Chapter 13 case paid on account of claim secured by motor vehicle in absence of showing that debt still exists and an accounting with regard
to any disposition of the collateral.
Court denies, without prejudice, application for unclaimed funds in Chapter 13 case paid on account of claim secured by motor vehicle in absence of showing that debt still exists and an accounting with regard
to any disposition of the collateral.