11 U.S.C. § 523

Section 523(a)(8) requires a debtor to prove undue hardship by a preponderance of the evidence to discharge student loans.

Wilson v. Educational Credit Management Corp. (In Re Wilson) · filed 2001-12-04(a)(8)

WHEREFORE, Debtor Jacqueline I. Wilson has failed to prove that the student loan obligations owed to Defendant Educational Credit Management Corporation imposes an undue hardship pursuant to 11 U.S.C. § 523(a)(8).

Section 523(a)(8) permits discharge of the portion of a student loan that the debtor proves would impose undue hardship.

East v. Educational Credit Management Corp. (In Re East) · filed 2001-10-10(a)(8)

Mr. East has the burden of proof on undue hardship. The court concludes that he has met that burden of proof to the extent that the obligation to the Department of Education exceeds $44,000. Therefore, to the extent that the obligation exceeded $44,000 at the time of trial, the obligation is dischargeable.

Section 523(a)(8) permits discharge of student loan debt to the extent repayment would impose undue hardship on the debtor and dependents.

Afflitto v. United States (In Re Afflitto) · filed 2001-12-18(a)(8)

The Court concludes that this Debtor has shown by a preponderance of the evidence that circumstances constituting undue hardship exist in this case if the Debtor were required to repay all of this student loan debt and its accruing interest.

Section 523(a)(8) makes student loans nondischargeable unless repayment would impose an undue hardship.

Bruen v. U.S.A. (In Re Bruen) · filed 2001-12-18(a)(8)

In asking for relief, however, the Debtor has conceded — and this Court agrees— that the circumstances of her case do not fall within the “undue hardship” exception to nondischargeability contained in 11 U.S.C. § 523(a)(8).

Section 523(a)(8) requires a debtor seeking to discharge a student loan for undue hardship to show that repayment would prevent a minimal standard of living.

Farrish v. U.S. Dept. of Education (In Re Farrish) · filed 2001-12-27(a)(8)

Consequently, the Debtor has failed to persuade the Court that he cannot earn sufficient income to maintain a minimal standard of living for himself and to repay his student loan.

Section 523(a)(8) places the burden on a debtor seeking to discharge a student loan to show undue hardship, including whether available full-time work would improve her finances during the repayment period.

Wessels v. Educational Credit Management Corp. · filed 2002-01-09(a)(8)

Until Congress adopts such a policy, however, I cannot say that working a 40-hour week would be an “undue hardship.” within the meaning of 11 U.S.C. § 523(a)(8).

Section 523(a)(8) assesses undue hardship based on the burden of the student loan debt itself, rather than a particular repayment schedule.

Long v. Educational Credit Management Corp. (In Re Long) · filed 2002-01-10(a)(8)

Furthermore, Section 523(a)(8) focuses on the burden of the debt itself, and not on the burden of a particular repayment schedule.

Section 523(a)(8) focuses the undue-hardship inquiry on the burden of the student loan debt itself, rather than a particular repayment schedule.

Nanci A. Long v. ECMC · filed 2002-01-10(a)(8)

Furthermore, Section 523(a)(8) focuses on the burden of the debt itself, and not on the burden of a particular repayment schedule.

Section 523(a)(8) makes post-petition interest on a student loan nondischargeable absent an undue-hardship showing.

SallieMae Servicing v. Banks · filed 2001-12-10(a)(8)

Mindful of the overwhelming precedent which has held that post-petition interest on a nondischargeable student loan debt is also nondischargeable, this Court concludes that the language in Mr. Banks’ Chapter 13 Plan purporting to discharge post-petition interest was improper. In fact, Mr. Banks has failed to demonstrate — or even allege — that either he or his dependents would suffer an “undue hardship” as required by 11 U.S.C. § 523(a)(8), despite the fact that Congress requires such a finding in order for a court to render a debtor’s student loan debt dischargeable.

Section 523(a)(8) does not prevent a student loan from being discharged under a final, unchallenged Chapter 13 plan and discharge order, even when the plan contains no finding of undue hardship.

Poland v. Educational Credit Management Corp. (In Re Poland) · filed 2001-12-17(a)(8)

The same reasoning applies with equal force to the plan in the instant case, notwithstanding the absence of any finding of undue hardship. The plan and discharge order provided for the discharge of the student loans in question. Although the court is not particularly enthused about upholding a discharge that is clearly inconsistent with the Bankruptcy Code, a faithful reading of Andersen requires application of the same rule of finality under the circumstances of this case.

Section 523(a)(8) covers student loans guaranteed by a nonprofit that plays a meaningful part in procuring them, even when a for-profit lender funds the loans.

McClain v. American Student Assistance (In Re McClain) · filed 2002-01-02(a)(8)

As the above language illustrates, Ameri-trust/Key’s funding of the loans at issue was conditioned upon TERI’s participation in guaranteeing the loans. Thus, TERI played a meaningful part in procurement of the loans, making them nondischargeable pursuant to the language of § 523(a)(8).

Section 523(a)(8) does not permit a partial discharge of student loans without a showing of undue hardship.

Illinois Student Assistance Commission v. Cox · filed 2002-01-09(a)(8)

Because § 523(a)(8) does not authorize such relief, however, the bankruptcy court’s September 18, 2001 decision reducing appellee’s student loan indebtedness is hereby REVERSED [R. 37].

Under § 523(a)(8), a student-loan creditor seeking summary judgment must show that no material facts are disputed and that the debtor cannot prove at least one element of undue hardship.

Newman v. Education Credit Management Corp. (In Re Newman) · filed 2002-01-03(a)(8)

Thus, in order for defendant Education Credit Management Corp. to prevail on summary judgment in this proceeding under section 523(a)(8), it must demonstrate that material facts are not in dispute and that the debtor will be unable to meet her burden of proof on one or more elements of the three-part Brunner standard.

Section 523(a)(8) excepts a student loan from discharge when the debtor fails to prove that repayment would impose undue hardship.

Block v. U.S. Department of Education (In Re Block) · filed 2002-02-13(a)(8)

Since the Debtor has failed to meet his burden of proof, the Court finds his student loan debt to DOE in the amount of $120,591.00 nondischargeable.

Section 523(a)(8) uses the Brunner test to determine whether repaying student loans would cause undue hardship.

In Re Mallinckrodt · filed 2002-02-28(a)(8)

This Court does not dispute the bankruptcy court’s characterization of the legislative history behind § 523(a)(8). The court nevertheless declines the opportunity to expand the Brunner test and instead adopts it as the applicable standard to determine “undue hardship.”

Section 523(a)(8) permits discharge of a student loan when repayment would impose undue hardship; an alternate repayment plan is one factor in that assessment.

Balaski v. Educational Credit Management Corp. (In Re Balaski) · filed 2002-02-28(a)(8)

The court finds that repayment, under a standard repayment plan or alternate repayment plan, of the student loan obligation owing ECMC would work an undue hardship on the debtor. The debt is discharged pursuant to 11 U.S.C. § 523(a)(8).

A debtor who fails to show lasting inability to repay and good faith repayment efforts does not qualify for a student loan hardship discharge under § 523(a)(8).

Hall v. U.S. Department of Education National Payment Center (In Re Hall) · filed 2002-03-14(a)(8)

Accordingly, we find that Mr. Hall is not entitled to a hardship discharge pursuant to § 523(a)(8) of the Bankruptcy Code.

Section 523(a)(8) requires a debtor seeking to discharge student loans for undue hardship to show exceptional circumstances indicating that the inability to repay is likely to persist for a significant portion of the repayment period.

Goulet, Jon P. v. Educational Credit · filed 2002-03-27(a)(8)

He has serious problems, but we are reluctant to label these pre-loan problems "additional, exceptional circumstances" so as to constitute "undue hardship" for purposes of Section 523(a)(8).

Section 523(a)(8) permits a partial discharge of student loan debt only to the extent that repayment would impose undue hardship.

Tennessee Student Assistance Corp. v. Mort (In Re Mort) · filed 2002-01-18(a)(8)

The better approach is to permit a partial discharge only to the extent that it would be an undue hardship for that part of the loan obligation not to be discharged.

Pre-consolidation payments count when assessing whether a debtor made a good faith effort to repay a student loan under the undue hardship test.

Lewis v. Illinois Student Assistance Commission (In Re Lewis) · filed 2002-03-27(a)(8)

This Court holds that the restructuring of the student loan that occurred in 1990 in the form of a “consolidation” does not preclude consideration of the payments made prior thereto, for purposes of determining whether the DEBTOR made a good faith effort to repay the loan.

Section 523(a)(8) permits discharge of post-petition student loan interest only if repayment would impose undue hardship on the debtor or the debtor’s dependents.

Educational Credit Management Corp. v. Buchanan · filed 2002-03-29(a)(8)

Because, absent undue hardship, interest on student loan debt continues to accrue throughout the pendency of any Chapter 13 bankruptcy proceedings, interest on Mrs. Buchanan’s student loan debt may be discharged only if failing to discharge the debt would subject her to undue hardship.

Section 523(a)(8) requires a debtor seeking to discharge student loans for undue hardship to show that financial hardship is likely to persist and that the debtor made good faith efforts to repay.

Weir v. Paige (In Re Weir) · filed 2002-03-29(a)(8)

While it does not appear that debtor can maintain, based on her current income and expenses, a minimal standard of living for herself and her dependents if forced to repay the loans, the test requires that debtor meet all three conditions to receive a discharge under § 523(a)(8). ... Debtor did not present sufficient facts to show, by a preponderance of the evidence, that her present circumstances are likely to exist for a significant portion of the repayment period.

Section 523(a)(8) allows student loans to be discharged when the debtor proves undue hardship.

Gerhardt v. Southwest Student Services Corp. (In Re Gerhardt) · filed 2002-04-09(a)(8)

The court finds that Ger-hardt has met his burden of proving undue hardship under Section 523(a)(8), and therefore, the student loans are discharged.

Section 523(a)(8) permits discharge of student loans only if the debtor proves that excepting the debt from discharge would impose an undue hardship.

In Re Wright · filed 2002-04-29(a)(8)

The law is well settled that student loans cannot be discharged in bankruptcy unless the debtor can prove that excepting the debt from discharge would impose an undue hardship. 11 U.S.C. § 523(a)(8).

Section 523(a)(8) leaves student loans nondischargeable when the debtor fails to establish undue hardship.

Kirchhofer v. Direct Loans (In Re Kirchhofer) · filed 2002-05-02(a)(8)

In conclusion, the Court holds that the Debtor is not entitled to receive an “undue hardship” discharge of her student loan obligations pursuant to 11 U.S.C. § 523(a)(8).

Section 523(a)(8) requires courts to assess undue hardship separately for each student loan.

Morris v. University of Arkansas (In Re Morris) · filed 2002-05-20(a)(8)

In the case of multiple educational loans or obligations, the statute requires that the bankruptcy court apply the test for undue hardship to each educational loan rather than to the total of the indebtedness for educational loans.

Section 523(a)(8) does not permit a court to discharge only part of a single student loan.

Pincus v. Graduate Loan Center (In Re Pincus) · filed 2002-04-16(a)(8)

First, no language in Code § 523(a)(8), which refers to “an educational benefit overpayment or loan,” suggests that a bankruptcy court has the authority to grant partial discharge of a single loan.

Section 523(a)(8) requires a debtor seeking an undue hardship discharge of student loans to show a good faith effort to repay them.

Flores v. U.S. Dept. of Education (In Re Flores) · filed 2002-07-02(a)(8)

Accordingly, as the Debtor has, for the foregoing reasons, failed to establish that she acted in good faith toward the repayment of her student loan obligations, no “undue hardship” discharge is warranted in this case.

Section 523(a)(8) allows a student loan to be discharged when the debtor proves all three Brunner undue hardship elements.

Myers v. Fifth Third Bank (In Re Myers) · filed 2002-07-09(a)(8)

The Court determines that the debtor has met all three elements of the Brunner test as to the following loans stated in the Defendant’s List (Doc. 27-1), and it would be an undue hardship for the debtor to repay any of these loans: Loan # 6 in the amount of $48,837.10, which is discharged in full; Loan # 4 in the amount of $6,057.97, which is discharged in full; Loan # 1 in the amount of $4,543.46, which is discharged in full.

Section 523(a)(8) requires a debtor to establish all elements of undue hardship before a court may consider partially discharging student loan debt.

Archibald v. United Student Aid Funds, Inc. (In Re Archibald) · filed 2002-06-03(a)(8)

At a minimum, the Debtor would have had to establish all the elements of “undue hardship” for the Court to consider such relief.

Section 523(a)(8) requires undue hardship to be assessed for each student loan separately; a debtor’s inability to pay anything toward the loans can establish hardship for each.

Cheney v. Educational Credit Management Corp. (In Re Cheney) · filed 2002-07-08(a)(8)

However, a fair reading of the record in this case is that the bankruptcy court concluded that Cheney could not pay anything toward her student loans in light of her circumstances, which is sufficient basis to conclude that Cheney had established “undue hardship” as to each of her loans, whether considered separately or together.

Section 523(a)(8) requires a debtor to establish all three elements of the Brunner test to discharge a student loan for undue hardship.

Siegel v. U.S.A. Group Guarantee Services (In Re Siegel) · filed 2002-08-14(a)(8)

Accordingly, as it is a debt- or’s burden to establish the existence of all three prongs of the Brunner Test, the Court cannot find that the Debtor in this case is entitled to an “undue hardship” discharge of her student loan debt.

Section 523(a)(8)(B) permits discharge of student loans for undue hardship without requiring the debtor or dependents to live in abject poverty.

Innes v. Kansas (In Re Innes) · filed 2002-08-27(a)(8)(B)

Neither the debtor nor his family must live in abject poverty to be entitled to relief under § 523(a)(8).

Section 523(a)(8) permits discharge of student loans when the debtor meets the applicable three-part undue hardship test.

Rivera v. New Jersey Higher Education Student Assistant Authority (In Re Rivera) · filed 2002-10-08(a)(8)

Based on the above findings, the court finds that the debtor meets the three elements of the “undue hardship” test adopted by the Third Circuit. The debt- or’s request for a hardship discharge of his student loan obligations pursuant to 11 U.S.C. § 523(a)(8) is hereby GRANTED.

Section 523(a)(8) requires the debtor to prove undue hardship; current difficulty repaying student loans does not warrant discharge when modest lifestyle changes could increase family income.

Berscheid v. Educational Credit Management Corp. (In Re Berscheid) · filed 2002-11-04(a)(8)

The debtor bears the burden of proving undue hardship. ... While Berscheid may have difficulty paying ECMC now, with modest lifestyle changes and the strong possibility that the family’s financial resources could be increased to repay the student loan debt owed to ECMC, it would be inappropriate to grant Berscheid the relief he requests.

Section 523(a)(8) excepts student loans from discharge unless the debtor demonstrates undue hardship, including an inability to maintain a minimal standard of living while repaying the loans and a good faith effort to repay them.

Hasbrook v. Citibank (In Re Hasbrook) · filed 2002-11-06(a)(8)

The court further finds that the debtor has failed in her burden of demonstrating undue hardship, both by admitting that her payments over time are affordable within a minimal standard of living, and also by failing to demonstrate that she has made a good faith effort to repay the loan. The deemed admitted facts are sufficient to establish as a matter of law that the debtor’s student loan debt should be excepted from discharge.

Section 523(a)(8) allows student loan debt to be discharged when the debtor proves that repayment would impose an undue hardship.

Buzoiu v. PHEAA · filed 2002-11-13(a)(8)

The appeal arises out of an adversary proceeding that Buziou brought in the bankruptcy court seeking an order that her loans are dischargeable because their repayment would impose an “undue hardship” on her and thus are excluded by 11 U.S.C. § 523(a)(8) from the operation of that subsection. ... We carefully have reviewed this matter and, though aware that Buziou had the burden to demonstrate “undue hardship,” id. at 301, do not find any erroneous finding of fact or conclusion of law and consequently will affirm the order of the district court entered January 29, 2002, affirming the order of the bankruptcy court.

Section 523(a)(8) excepts student loans from discharge unless the debtor proves that repayment would impose an undue hardship.

Hollins v. United States Department of Education (In Re Hollins) · filed 2002-11-22(a)(8)

IT IS ORDERED that, under § 523(a)(8), the debt to the DOE is not discharged. Hollins has not established that excepting the debt from discharge will impose an undue hardship on the debtor.

Section 523(a)(8) requires a debtor seeking to discharge a student loan for undue hardship to show a good faith effort to repay it.

Hall v. U.S. Dept. of Ed. (In Re Hall) · filed 2002-11-22(a)(8)

Accordingly, as all prongs of the Brunner Test must be met to establish the existence “undue hardship,” the Debtor is not entitled to receive a discharge of her student loan obligation pursuant to 11 U.S.C. § 523(a)(8).

Section 523(a)(8) permits an undue hardship discharge of a student loan only if the debtor proves all three Brunner elements.

Pennsylvania Higher Education Assistance Agency v. Birrane (In Re Birrane) · filed 2002-12-06(a)(8)

Generally, if one of the elements of the three part “undue hardship” test is not proven, the inquiry must end and the student loan cannot be discharged.

Section 523(a)(8) permits a court to discharge individual unconsolidated student loans that impose an undue hardship while leaving other loans nondischargeable.

Lamanna v. EFS Services, Inc. (In Re Lamanna) · filed 2002-10-15(a)(8)

I also rule, however, that § 523(a)(8) not only allows a partial discharge of a debtor’s total student loan obligation, but mandates that result upon a finding of undue hardship. ... Under the above order, to the extent that some of the twenty-four loans can be paid according to their terms, those loans are determined to be nondischargeable. The remaining loans are discharged, pursuant to Section 523(a)(8).

Section 523(a)(8) permits discharge of student loan interest and attorneys’ fees when paying them would impose an undue hardship, even if the principal remains nondischargeable.

Alderete v. Colorado Student Loan Program (In Re Alderete) · filed 2002-12-05(a)(8)

The Court will follow the lead of the Bankruptcy Court for the Eastern District of Oklahoma, and conclude that the repayment of principal will not impose an undue hardship, but that interest and attorneys’ fees associated with Plaintiffs’ student loans is dischargeable.

Section 523(a)(8) requires courts assessing whether student loan repayment would cause undue hardship to consider the debtor’s spouse’s income.

Sweeney v. Educational Credit Management Corp. (In Re Sweeney) · filed 2002-12-12(a)(8)

In this court’s view, no evidence can change the requirement that a court must consider a spouse’s income in deciding whether a student loan constitutes an undue burden.

Section 523(a)(8) permits a partial discharge of student loans when repayment would impose undue hardship under the Brunner test.

Floyd v. Educational Credit Management Corp. · filed 2002-12-19(a)(8)

Government guaranteed student loans cannot be discharged in bankruptcy unless "excepting such debt from discharge . . . will impose an undue hardship on the debtor and the debtor’s dependents." 11 U.S.C. § 523(a)(8). ... Because the record before the district court fails to show that the bankruptcy court clearly erred in finding that Floyd established undue hardship under Brunner, we vacate the district court’s order and remand this case to the district court with instructions to reinstate the bankruptcy court’s order partially discharging the debts at issue.

Section 523(a)(8) makes student loans nondischargeable unless the debtor proves that repayment would cause undue hardship.

McGinnis v. Pennsylvania Higher Education Assistance Agency (In Re McGinnis) · filed 2002-12-20(a)(8)

Under 11 U.S.C. § 523(a)(8), Debtor’s student loans are nondischargeable unless Debtor can prove that repayment of the loans would subject her to undue hardship.

Section 523(a)(8) requires a debtor seeking to discharge student loans for undue hardship to satisfy every prong of the Brunner test.

Stern v. Education Resources Institute Inc. (In Re Stern) · filed 2002-12-27(a)(8)

Because the Court has determined that the Debtor has failed to meet his burden of proof with respect to the second prong, it need not address whether the Debtor made a good faith effort to repay his student loans in reaching the conclusion that the Debtor is not entitled to a full discharge of his student loan obligations pursuant to Code § 523(a)(8).

Section 523(a)(8) requires a debtor seeking to discharge student loans for undue hardship to prove entitlement by a preponderance of the evidence.

Pace v. Educational Credit Management Corp. (In Re Pace) · filed 2003-01-29(a)(8)

Based upon a review of the facts of this case, section 523(a)(8) of the Code and case law, the Court has concluded that the Plaintiff has failed to establish by a preponderance of the evidence that she is entitled to an undue hardship discharge.

Section 523(a)(8) treats the age of the original student loan and the terms of a consolidation note as factors in determining undue hardship; neither loan term controls the analysis.

Ordaz v. Illinois Student Assistance Commission (In Re Ordaz) · filed 2002-12-23(a)(8)

Accordingly, in light of the 1998 amendment, this Court rejects the position of both parties and concludes that neither the term of the original loan nor the term of the consolidation note controls the analysis under Brunner’s second prong. The Court will consider, among the totality of the circumstances, both the age of the original loan and the terms of and purpose for the consolidation note.

Section 523(a)(8) permits discharge of student loans only upon a showing of undue hardship; it does not permit partial discharge.

Roach v. United Student Aid Fund, Inc. (In Re Roach) · filed 2003-01-13(a)(8)

Instead, this court agrees with the decisions that hold that Section 523(a)(8) means what it says — a discharge of student loans is allowed only upon a showing of hardship that is “undue” — partial discharges are not permitted.

Section 523(a)(8) permits a court to consider the expenses of dependents who joined the debtor’s household after the student loans were incurred when deciding undue hardship.

Mitcham v. U.S. Dep't of Ed. (In Re Mitcham) · filed 2003-01-15(a)(8)

First, the language of § 523(a)(8) provides that an “undue hardship” determination is made by reference to both “the debtor and the debtor’s dependents[.]” Thus, contrary to the Creditor’s position, no mention is made in the statute that the debtor’s dependent(s) be in existence at the time the student loan debt was incurred.

Section 523(a)(8) permits discharge of student loans when repayment would impose an undue hardship on the debtor.

McGinnis v. Pennsylvania Higher Education Assistance Agency (In Re McGinnis) · filed 2003-02-14(a)(8)

The Court holds that it would be an undue hardship on Plaintiff if she were forced to repay her student loans. Therefore, Plaintiffs student loans, totaling $55,196.00, are dischargeable under 11 U.S.C. § 523(a)(8).

Section 523(a)(8)(B) requires courts to assess undue hardship under the totality of the circumstances, including the debtor’s financial resources, necessary living expenses, and other relevant facts.

Long v. Educ. Credit Mgt. · filed 2003-03-11(a)(8)(B)

We are convinced that requiring our bankruptcy courts to adhere to the strict parameters of a particular test would diminish the inherent discretion contained in § 523(a)(8)(B). Therefore, we continue–as we first did in Andrews–to embrace a totality-of-the-circumstances approach to the “undue hardship” inquiry.

Section 523(a)(8)(B) assesses undue hardship from student loan debt under the totality of the circumstances, including the debtor’s financial resources, necessary living expenses, and other relevant facts.

In Re: Nanci Anne Long Debtor. Nanci Anne Long v. Educational Credit Management Corporation · filed 2003-03-11(a)(8)(B)

In evaluating the totality-of-the-circumstances, our bankruptcy reviewing courts should consider: (1) the debtor’s past, present, and reasonably reliable future financial resources; (2) a calculation of the debtor’s and her dependent’s reasonable necessary living expenses; and (3) any other relevant facts and circumstances surrounding each particular bankruptcy case.

Section 523(a)(8) allows student loans to be discharged when excepting them from discharge would impose undue hardship on the debtor and the debtor’s dependents.

Hoskins v. Educational Credit Management Corp. (In Re Hoskins) · filed 2003-04-03(a)(8)

For the reasons stated in an Opinion issued this day, IT IS HEREBY ORDERED that the DEBTOR’S student loan debt is determined to be dischargeable as an undue hardship pursuant to 11 U.S.C. Section 523(a)(8) and Judgment is entered for the DEBTOR, Donald Hoskins, and against the DEFENDANT, Educational Credit Management Corporation.

Section 523(a)(8) requires debtors seeking to discharge educational loans for undue hardship to show that their financial difficulties are likely to persist for a significant portion of the repayment period.

Ciesicki v. Mae (In Re Ciesicki) · filed 2003-04-17(a)(8)

Despite acting in good faith and being unable to maintain a minimal standard of living based on current income and expenses, this Court will not grant a hardship discharge under § 523(a)(8) because Plaintiffs failed to demonstrate that their current state of affairs is likely to persist for a significant portion of the repayment period.

Section 523(a)(8) requires a good faith effort to repay student loans to establish undue hardship; paying other debts while making no student loan payments did not satisfy that requirement here.

Fuller v. U.S. Department of Education (In Re Fuller) · filed 2003-03-13(a)(8)

However, in a bankruptcy context, the Court simply cannot conclude that paying non-student loan debt while not paying student loan debt constitutes a good faith effort to repay student loan debt.

Section 523(a)(8) permits a partial discharge of student loan debt only after a preliminary finding of undue hardship.

Educational Credit Management Corp. v. Blair (In Re Blair) · filed 2003-03-27(a)(8)

We agree with the reasoning of East, Saxman, and Yapuncich and believe that a preliminary finding of “undue hardship” is necessary before a bankruptcy court can exercise its equitable powers in granting a partial discharge of student loan debts.

Section 523(a)(8) permits partial discharge of a student loan only to the extent the debtor establishes undue hardship.

In Re Dennis Leroy Saxman, Debtor, Dennis Leroy Saxman v. Educational Credit Management Corporation, and Department of E · filed 2003-04-14(a)(8)

We therefore conclude that before the bankruptcy court can partially discharge student debt pursuant to § 105(a), it must first find that the portion being discharged satisfies the requirements under § 523(a)(8).

Section 523(a)(8) requires a debtor to establish undue hardship to discharge student loan debt.

Parks v. Graduate Loan Center (In Re Parks) · filed 2003-05-07(a)(8)

Based on a review of the trial testimony, and the record, generally, the Debtor has not met her burden to establish undue hardship under 11 U.S.C. § 523(a)(8).

Section 523(a)(8) excepts student loans from discharge unless repayment would impose an undue hardship, assessed under the totality of the debtor’s circumstances.

Long v. Educational Credit Management Corp. (In Re Long) · filed 2003-05-08(a)(8)

This surplus income is sufficient to cover the $54 monthly payment for both the loan to Appellant and the HEAL Loan under the Income Contingent Repayment Plan. Therefore we conclude that the loan to Appellant should not be discharged.

Section 523(a)(8) requires a debtor seeking to discharge a student loan to prove that repayment would impose an undue hardship.

Nanci A. Long v. ECMC · filed 2003-05-08(a)(8)

The Debtor bears the burden of proving that excepting her student loans from discharge pursuant to Section 523(a)(8) of the Bankruptcy Code would result in an undue hardship. The Debtor has failed to establish undue hardship.

Section 523(a)(8) does not permit discharge of student loans for undue hardship when the debtor can repay them while maintaining a minimal standard of living.

Williams v. New York State Higher Education Services Corp. (In Re Williams) · filed 2003-06-02(a)(8)

The Bankruptcy Court correctly held that Williams will not suffer undue hardship from the repayment of her student loans. Williams does not satisfy the first prong of the Brunner test because the undisputed facts establish that Williams’ income and expenses will allow her to make loan repayments while maintaining a minimal standard of living.

Section 523(a)(8) permits discharge of student loan debt for undue hardship; a debtor’s ability to maintain a minimal standard of living while repaying the debt bears on that determination.

Garrett v. Nebraska Higher Education Loan Program, Inc. (In Re Garrett) · filed 2003-06-03(a)(8)

Curtis Wesley and Janet Laverne Garrett (Debtors) appeal from the decision of the Bankruptcy Appellate Panel (BAP) holding that the bankruptcy court properly denied them a discharge of their student loan debts because they failed to satisfy the “undue hardship” exception under 11 U.S.C. § 523(a)(8). ... For substantially the same reasons stated in the BAP opinion filed August 21, 2002, we conclude that the bankruptcy court’s findings of fact are not clearly erroneous and that its decision must be upheld.

Section 523(a)(8) requires a showing of undue hardship to discharge student loans; temporary financial hardship alone is insufficient.

Schmidt v. SLM Corp. (In Re Schmidt) · filed 2003-06-04(a)(8)

The intent of Congress is clear that Debtors are not to be excused from paying their student loans without a showing of undue hardship, not merely a temporary hardship.

Section 523(a)(8) requires a debtor to satisfy all three Brunner prongs to discharge student loans for undue hardship.

Hutchison v. Pennsylvania Higher Education Assistance Administration (In Re Hutchison) · filed 2003-06-10(a)(8)

The Debtors must prove all three elements identified in Brunner before discharge can be granted on grounds of undue hardship.

Section 523(a)(8) requires a debtor seeking an undue hardship discharge of student loans to show that financial difficulties are likely to persist for a significant period.

Chime v. Suntech Student Loan (In Re Chime) · filed 2003-06-16(a)(8)

The real essence, however, of the “undue hardship” standard of § 523(a)(8) is set forth in the second prong of the Brunner Test which looks to whether the debtor’s financial difficulties will persist for a significant period of time. ... As a result, neither of the Debtors are, at this juncture, entitled to an “undue hardship” discharge of their student loan obligations.

Section 523(a)(8) requires the court to consider a debtor’s current and anticipated future circumstances when deciding whether student loan repayment would impose undue hardship.

Warner v. Educational Credit Management Corp. (In Re Warner) · filed 2003-06-19(a)(8)

If, after considering all of the current and future anticipated circumstances, it appears that the debtor would be able to make some regular payments on the loan, either currently or in the future, then, according to the caselaw in the Eighth Circuit, the court should deny the request for a hardship discharge. ... The request for an “undue hardship” discharge of the student loan obligation of this debtor is denied.

Section 523(a)(8) requires a debtor seeking to discharge student loans for undue hardship to show a good faith effort to repay them; filing before the loans first become due does not satisfy that requirement.

Lavoie v. United States Department of Education (In re Lavoie) · filed 2003-04-18(a)(8)

Then, in her responding affidavit, Lavoie concedes that these obligations have yet to first become due. For this reason alone, Lavoie will be unable to show any good faith effort to repay the Department of Education.

Section 523(a)(8) requires a debtor seeking an undue-hardship discharge of student loans to show good-faith repayment efforts from the first payment due date through the bankruptcy filing.

Pelliccia v. United States Department of Education · filed 2003-05-02(a)(8)

Accordingly, we hold that a debtor seeking to discharge a student loan obligation on the ground that barring him from doing so would result in undue hardship must prove that he or she made good faith efforts to repay the loan over the entire time period between the date on which the first loan payment became due and the date on which the debtor filed for bankruptcy.

Section 523(a)(8)’s undue hardship determination in a Chapter 13 case depends on the debtor’s ability to repay student loans after bankruptcy protection ends.

Bender v. Educational Credit Management Corp. (In Re Bender) · filed 2003-05-05(a)(8)

As a matter of law, therefore, the question of dischargeability under § 523(a)(8) should not hinge upon the Benders’ current financial condition, but, rather, should be dependent upon their ability to pay off the loans after emerging from bankruptcy protection.

Section 523(a)(8) keeps student loan debt nondischargeable absent undue hardship, even if the creditor fails to file a timely proof of claim.

Gallick v. United States Department of Education (In re Gallick) · filed 2003-05-15(a)(8)

However, failure to follow the proper procedure with respect to filing claims does not affect the clear statutory language of 11 U.S.C. § 523 making certain debts nondischargeable.

Section 523(a)(8) bars discharge of student loans when the debtor can repay them while maintaining a minimal standard of living.

Educational Credit Management Corp. v. Stanley · filed 2003-06-25(a)(8)

Under Brunner, as accepted here by both sides, undue hardship does not exist if a debtor can make the required student loan payments and still maintain a “minimal standard of living.” This is, at bottom, a financial issue, and Ms. Stanley, like many other students to whom Congress has denied a discharge, can pay this debt while maintaining at least a minimal standard of living.

Section 523(a)(8) excepts student loans from discharge unless the debtor proves undue hardship by a preponderance of the evidence.

Mulherin v. Sallie Mae Servicing Corp. (In Re Mulherin) · filed 2003-06-27(a)(8)

However, regardless of whether Debtors must ultimately pay the IRS $47,387 or some lesser amount, Debtor James Mulherin has failed to satisfy, by a preponderance of the evidence, the “certainty of hopelessness” required to overcome the § 523(a)(8) exception from discharge for his student loan.

Section 523(a)(8) permits discharge of student loans when repayment would impose an undue hardship on the debtor and dependents, assessed under the three-part Brunner test.

Carter v. Pennsylvania (In Re Carter) · filed 2003-07-17(a)(8)

Pursuant to § 523(a)(8), a debtor is entitled to have a student loan obligation discharged only if repayment of the obligation imposes an “undue hardship.” ... Debtor has proven all three elements of the Brunner test and is entitled to a discharge of her student loan obligations.

Section 523(a)(8) permits discharge of student loans when repayment would impose undue hardship, including a lasting inability to earn income despite good-faith efforts to address the debt.

Williams v. EFG Tech/Rutgers (In Re Williams) · filed 2003-07-25(a)(8)

Following trial, the court finds that the debt is dischargeable under 11 U.S.C. § 523(a)(8) since Ms. Williams’s medical conditions prevent her from earning an income, her medical conditions will persist for the foreseeable future, and she has made a good faith effort to deal with her student loans.

Section 523(a)(8) requires a debtor seeking to discharge student loans to prove undue hardship, including an inability to maintain a minimal standard of living and financial difficulty likely to persist.

O'Hearn, Timothy G. v. Educational Credit · filed 2003-08-08(a)(8)

Given the evidence in the record, we cannot say that the bankruptcy court was on solid ground in its determination that Mr. O’Hearn had met his burden on either the first or the second prong of the established “undue hardship” test.

Section 523(a)(8) allows student loan discharge for undue hardship, with eligibility for an Income Contingent Repayment Plan weighed as one factor.

Korhonen v. Educational Credit Management Corp. (In Re Korhonen) · filed 2003-06-30(a)(8)

The Income Contingent Repayment Plan cannot trump the Congressionally mandated individualized determination of undue hardship. The Income Contingent Repayment Plan is but one factor to be considered in determining undue hardship, but it is not determinative.

Under § 523(a)(8), failure to participate in a student loan repayment plan is one factor in assessing good faith, but does not by itself prevent an undue hardship discharge.

Alston v. U.S. Department of Education (In Re Alston) · filed 2003-07-03(a)(8)

The better view is the one adopted by other courts, including this Court in Newman, see supra n. 12, that failure to participate in a repayment plan is but one factor that a court should consider in making its good faith determination based on the totality of the circumstances.

Section 523(a)(8) bars any discharge of student loan debt, including a partial discharge, unless the debtor shows undue hardship.

Hemar Insurance v. Cox · filed 2003-07-23(a)(8)

There is no other language within § 523(a)(8) that could reasonably be construed to permit a discharge, partial or otherwise, absent a finding of “undue hardship.”

Section 523(a)(8) requires a debtor seeking an undue hardship discharge of student loans to make a good faith effort to repay, including exploring alternate payment options.

Stupka v. Great Lakes Ed. (In Re Stupka) · filed 2003-08-29(a)(8)

Regardless, from a factual viewpoint, the standard of “undue hardship” under § 523(a)(8) contemplates that a debtor will at least explore alternate payment options for his or her student-loan debt. Thus, a debtor’s ignorance of alternate payment options is anything but a positive factor.

Section 523(a)(8) requires a debtor seeking an undue hardship discharge of student loans to show that financial hardship is likely to persist for a significant portion of the repayment period.

Williford v. Oklahoma State Regents for Higher Education (In Re Williford) · filed 2003-09-08(a)(8)

(2) the debtor has not shown that additional circumstances exist indicating that the state of her financial affairs is likely to persist for a significant portion of the repayment period (thirty years).

Section 523(a)(8) makes a student loan nondischargeable unless the debtor shows that repayment would cause undue hardship.

Opetubo v. Citibank Student Loan Corp. · filed 2003-09-11(a)(8)

We find no clear error in the district court’s application of Brunner and affirm the non-dischargeability of the student loan obligation substantially for the reasons stated by the bankruptcy and district court judges.

Section 523(a)(8) bars discharge of student loans absent undue hardship, assessed under the totality of the circumstances, including available repayment options and expected changes in expenses.

Bruns v. Educational Credit Management Corp. (In Re Bruns) · filed 2003-09-23(a)(8)

Combining the Ford Program with the fact that his child support payments will gradually be reduced in the next few years causes a determination, under the “totality of the circumstances” test, that neither the debtor nor his dependents will suffer an undue hardship if the student loans are not discharged.

Under § 523(a)(8), a debtor’s failure to explore alternative student loan repayment plans must be evaluated case by case when assessing good faith.

Cota v. U.S. Department of Education (In Re Cota) · filed 2003-09-02(a)(8)

While debtors should not be permitted to try to obtain relief under 11 U.S.C. § 523(a)(8) before seriously considering other payment alternatives, a debtor’s failure to explore alternatives must be evaluated on a case by case basis.

Section 523(a)(8) treats an income contingent repayment plan as one factor in the undue hardship inquiry when its availability and effect on the debtor are shown.

Strand v. Sallie Mae Servicing Corp. (In Re Strand) · filed 2003-09-11(a)(8)

Instead, such a plan is something to consider, when the evidence of such a program and its availability and impact upon a given debtor is made clear in the record, and when the debtor’s reliable future financial resources, reasonable and necessary expenses, and other circumstances are not otherwise overwhelmingly determinative in any event.

Section 523(a)(8) permits discharge of student loans when repayment would impose an undue hardship, considering the debtor's financial circumstances and whether they are likely to improve.

Oyler v. Educational Credit Management Corp. (In Re Oyler) · filed 2003-10-23(a)(8)

Based on our review of the record, the Panel agrees that Oyler carried his burden of proving that he is entitled to a discharge of his student loans. Simply stated, Oyler's financial circumstances make it an undue hardship for him to repay this student loan of almost $40,000, and the record suggests no reason to believe that these circumstances are likely to change.

Section 523(a)(8) permits discharge of student loans for undue hardship based on the totality of the circumstances; the Brunner test is one way to assess hardship.

Oyler v. Edu Credit Mgnmt · filed 2003-10-23(a)(8)

Rather, Cheesman indicates that the Brunner test is one of several that can be used to determine if an undue hardship exists.

Section 523(a)(8) does not permit an undue hardship discharge based on a debtor’s choice to work only in a low-paying job in the field for which he trained.

United States Department of Education v. Gerhardt (In Re Gerhardt) · filed 2003-10-23(a)(8)

In addition, nothing in the Bankruptcy Code suggests that a debtor may choose to work only in the field in which he was trained, obtain a low-paying job, and then claim that it would be an undue hardship to repay his student loans.

Section 523(a)(8) excepts student loans from discharge unless the debtor proves that repayment would impose undue hardship on the debtor and dependents.

Bourque v. Educational Credit Management Corp. (In Re Bourque) · filed 2003-11-19(a)(8)

After consideration of the testimony and the exhibits, for the reasons set forth herein, the Debtor did not meet her burden of proving that repaying her student loans will cause her and her dependents “undue hardship” as required by § 523(a)(8) of the Bankruptcy Code.

Section 523(a)(8) requires a student loan debtor to exhaust available administrative remedies before receiving an undue-hardship discharge.

VerMaas v. Student Loans of North Dakota (In Re VerMaas) · filed 2003-12-03(a)(8)

Although it does appear that he has no current income and very little likelihood of future income, the Bankruptcy Code student loan hardship discharge should not be granted unless the student loan debtor has exhausted his administrative remedies under the student loan program.

Section 523(a)(8) does not permit an undue-hardship discharge when the debtor fails to satisfy the Brunner test.

Fish v. Sallie Mae, Inc. (In Re Fish) · filed 2003-12-17(a)(8)

In the present matter, debtor failed to satisfy even one prong of the Brunner test, thus a discharge must be denied.

Section 523(a)(8) requires a debtor seeking to discharge student loans for undue hardship to show additional circumstances strongly suggesting an inability to pay for a significant portion of the repayment period.

Ulm v. Educational Credit Management Corp. · filed 2004-01-12(a)(8)

Because no additional circumstances strongly suggest that Ulm will be unable to make student loan payments for a significant portion of the repayment period, she has not shown the existence of undue hardship. Accordingly, no portion of Ulm’s student loans should have been discharged pursuant to the undue hardship exception. The judgment of the Bankruptcy Court is REVERSED and Ulm’s loans are reinstated.

Section 523(a)(8) does not permit discharge of student loans for undue hardship when the debtor can repay them through available income or assets while meeting the family's basic needs.

Race v. Educational Credit Management Corp. (In Re Race) · filed 2004-01-26(a)(8)

For the reasons set forth below, the Court finds that excepting from discharge the student loan debt at issue in this proceeding will not constitute an undue hardship to the debtor and her dependents and, accordingly, judgment will be entered in favor of the defendants.

Section 523(a)(8) places the burden on a debtor seeking to discharge a student loan to prove undue hardship.

Educational Credit Management Corp. v. Boyer (In Re Boyer) · filed 2004-02-03(a)(8)

Second, § 523(a)(8) places the burden on the debtor to satisfy evidentiary elements of undue hardship.

Section 523(a)(8) requires a debtor seeking to discharge student loans for undue hardship to show, under the totality of the circumstances, more than a present inability to pay.

Burkhead v. United States (In Re Burkhead) · filed 2004-02-03(a)(8)

While it is true the Debtor’s present income is insufficient to permit her to pay her student loans and still maintain a minimal standard of living, the Debtor has not established that her prospects for increasing her future income are so bleak as to warrant a discharge of the student loans.

Section 523(a)(8) permits discharge of student loans for undue hardship under the Brunner framework, applied with consideration of the debtor’s circumstances and good faith.

Educational Credit Management Corp. v. Polleys · filed 2004-02-04(a)(8)

We therefore join the majority of the other circuits in adopting the Brunner framework. However, to better advance the Bankruptcy Code’s “fresh start” policy, and to provide judges with the discretion to weigh all the relevant considerations, the terms of the test must be applied such that debtors who truly cannot afford to repay their loans may have their loans discharged. Additionally, we think that the good faith portion of the Brunner test should consider whether the debtor is acting in good faith in seeking the discharge, or whether he is intentionally creating his hardship.

Section 523(a)(8) does not permit discharge of a student loan when the debtor can repay it while meeting reasonable living expenses.

Houshmand v. Missouri Student Loan Program (In Re Houshmand) · filed 2004-02-15(a)(8)

For all of the above reasons, the Court finds that the indebtedness owed by debt- or Hossaingholi Houshmand to defendant Missouri Student Loan Program is not dischargeable pursuant to 11 U.S.C. § 523(a)(8).

Section 523(a)(8) makes a government-guaranteed student loan nondischargeable unless repayment would impose an undue hardship on the debtor and the debtor’s dependents.

Grant v. Oklahoma Ex Rel. Physician Manpower Training Commission (In Re Grant) · filed 2004-02-18(a)(8)

The Court finds that the Debtor has sufficient income to pay his minimal living expenses and defray the Regents debt of approximately $42,000.00 without suffering undue hardship. Therefore, the Court determines that the student loan debt owed to Oklahoma State Regents for Higher Education is nondischargeable.

Section 523(a)(8) permits discharge of a student loan when repayment would impose an undue hardship on the debtor.

Faktor v. United States (In Re Faktor) · filed 2004-02-19(a)(8)

Finally, the court concludes that excepting the student loan from her discharge would impose an undue hardship. The loan should be discharged.

Section 523(a)(8) permits severe mental-health effects of a substantial student-loan debt to outweigh some ability to repay when deciding undue hardship.

Reynolds v. Pennsylvania Higher Education Assistance Agency (In Re Reynolds) · filed 2004-01-02(a)(8)

In the last instance, it must be open to a trial court to consider the nonpeeuniary effects of a debtor’s very substantial student loan burden, in passing on the issue of undue hardship under § 523(a)(8). ... The corollary is that it has to be open to the trial court to assign appropriate weight to non-pecuniary circumstances, and even to assign such factors greater weight than a potential ability to make payment.

Section 523(a)(8) permits a partial discharge of student loan debt when the debtor proves undue hardship as to the portion discharged.

Mason v. Help Services Group, Inc. (In Re Mason) · filed 2004-01-07(a)(8)

Instead, consistent with the language of Saxman, the spectrum of relief eligible to a debtor pursuing a § 523(a)(8) action ranges from a full discharge to no discharge at all, with the outcome dependent upon the particular facts of each case and the sufficiency of the evidence.

Section 523(a)(8) did not discharge a student loan when the debtor failed to seek an undue-hardship determination in bankruptcy.

McElroy v. U.S. Department of Education · filed 2004-01-12(a)(8)

First, a 1991 bankruptcy discharge order did not discharge McElroy’s student-loan debt: the debt was not dischargeable, and McElroy did not attempt in his bankruptcy proceedings to have the debt discharged for undue hardship.

Section 523(a)(8) permits discharge of student loans for undue hardship only if the debtor proves, among other things, that repayment would prevent a minimal standard of living.

Murphy v. Mae (In Re Murphy) · filed 2004-02-23(a)(8)

A review of the evidence in the instant matter shows Murphy to have failed to carry her burden in proving she will be unable to maintain a minimal standard of living if required to repay the remaining student loans.

Under § 523(a)(8), an income-contingent repayment plan is one factor in deciding whether repaying a student loan would impose an undue hardship; its availability does not preclude discharge.

Fahrer v. Sallie Mae Servicing Corp. (In Re Fahrer) · filed 2004-03-04(a)(8)

The availability of the ICRP, however, is but one of the factors for the Court to consider in determining whether excepting the debt from discharge would impose an undue hardship on the Debtor.

Section 523(a)(8) does not permit even a partial discharge of student loan debt unless the debtor shows undue hardship.

Educational Credit Management Corp. v. Moore · filed 2004-03-23(a)(8)

Both the district court and the bankruptcy court concede that Moore has not satisfied our three-part undue hardship test to discharge her student loan pursuant to 11 U.S.C. § 523(a)(8). We hold, therefore, that she is not entitled to a partial discharge of her debt.

Section 523(a)(8) excepts student loans from discharge unless denying discharge would impose undue hardship on the debtor.

Hanson v. Education Credit Management Corp. (In Re Hanson, Debtor) · filed 2004-03-31(a)(8)

At the time debtor filed his petition and at all times prior to the discharge order § 523(a)(8) of the bankruptcy code excepted student loans from discharge except where denying a discharge would impose undue hardship on the debtor.

Section 523(a)(8) permits discharge of student loan debt when repayment would impose an undue hardship on the debtor.

McMullin v. United States Department of Education (In Re McMullin) · filed 2004-04-06(a)(8)

Considering the pleadings, the applicable law, the evidence and the testimony, the court finds that the debtor has sustained his burden of showing undue hardship under 11 U.S.C. § 523(a)(8), and will discharge the student loan debt.

Section 523(a)(8) measures undue hardship as of trial and over a reasonably forecast near future.

Pollard v. Superior Community Credit Union (In Re Pollard) · filed 2004-02-24(a)(8)

Undue hardship under § 523(a)(8) must be measured as of the date of the trial, and for a reasonably-forecast near future alone.

Section 523(a)(8) permits a partial discharge of student loans only if the debtor first proves that repaying the entire loan would impose an undue hardship.

Educational Credit Management Corp. v. Pope (In Re Pope) · filed 2004-03-04(a)(8)

In this appeal, Appellant argues that the bankruptcy court erred in granting a partial discharge under 11 U.S.C. § 523(a)(8) after finding that Appellee did not prove undue hardship. This Court agrees based on Saxman, which requires that a debtor must prove that the repayment of the entire loan would impose an undue hardship before a bankruptcy court may grant even a partial discharge.

Section 523(a)(8) does not itself authorize a partial discharge of student loans; a bankruptcy court may grant one under its independent § 105 equitable powers.

DeMatteis v. Case Western Reserve University · filed 2004-03-08(a)(8)

While this court’s review focuses, as it must, on the decision of the bankruptcy court, it should be noted that the BAP’s finding that § 523(a)(8) does not require an all-or-nothing approach when read with a § 105 overlay does not find support in Hornsby, which rather relies exclusively on § 105 for the authority to grant partial discharge. Accordingly, based upon this court’s prior binding decision in Hornsby, we reject the overlay theory of the BAP in favor of the independent § 105 equitable grounds theory relied upon by the bankruptcy court.

Section 523(a)(8) permits discharge of student loans for undue hardship, and a debtor’s failure to apply for a repayment program does not automatically defeat good faith.

Porrazzo v. Educational Credit Management Corp. (In Re Porrazzo) · filed 2004-03-31(a)(8)

Obviously, the mere existence of the Program does not mandate the conclusion that a debtor who does not apply for its benefits has failed to satisfy the good faith test and therefore is not entitled to a discharge under § 523(a)(8).

Section 523(a)(8) permits discharge of student loan debt when repayment would impose an undue hardship on the debtor and dependents.

Alderete v. Educational Credit Management Corp. (In Re Alderete) · filed 2004-04-16(a)(8)

Accordingly, based on Polleys, the bankruptcy court should have discharged the Student Loans in their entirety as an undue hardship within the meaning of § 523(a)(8).

Section 523(a)(8) permits discharge of student loan debt when repayment would impose an undue hardship on the debtor.

Lokey v. United States Department of Education (In Re Lokey) · filed 2004-05-13(a)(8)

Based on the foregoing, we find that the bankruptcy court clearly erred in finding that Lokey failed to establish undue hardship.

Section 523(a)(8) requires a debtor seeking an undue hardship discharge of student loans to prove that the hardship is likely to persist for a significant portion of the repayment period.

Ryan v. Department of Education (In Re Ryan) · filed 2004-05-18(a)(8)

Under this provision, debtor must show that repaying the loans would cause her “undue hardship.” ... In the instant case, even assuming that debtor has established the first element, the Court finds that debtor has failed to prove the second prong of the test. That is, debtor has not shown that because of additional circumstances, her current state of financial affairs is likely to continue for a significant portion of the repayment period.

Section 523(a)(8) excepts student loans from discharge unless the debtor proves that repayment would impose an undue hardship.

Mandala v. Educational Credit Management Corp. (In Re Mandala) · filed 2004-05-25(a)(8)

Judgment should be entered for ECMC and against Patricia Mandala on her complaint, finding that ECMC’s student loan debts are excepted from discharge under § 523(a)(8) and § 1328(a)(2) to the extent of $56,639, less whatever amounts are applied to the principal balance of the debt from payments through the Chapter 13 plan.

Section 523(a)(8) requires a debtor seeking to discharge student loans for undue hardship to show that the inability to repay while maintaining a minimal standard of living is likely to persist for a significant portion of the repayment period.

Bard-Prinzing v. Higher Education Assistance, Foundation (In Re Bard-Prinzing) · filed 2004-06-24(a)(8)

It would, however, impose an undue hardship on Plaintiff, within the meaning of 11 U.S.C. § 523(a)(8), if she were presently required to pay anything on any of the guaranteed student loans here at issue. ... Therefore, she does not presently meet the required showing of “likely to persist” (Conclusion No. 3) for statutory “undue hardship.”

Section 523(a)(8) permits a student loan debt to be discharged when the debtor proves that repayment would impose an undue hardship.

Durrani v. Educational Credit Management Corp. (In Re Durrani) · filed 2004-06-30(a)(8)

Therefore, Durrani has met her burden of showing that excepting the debt to ECMC from discharge would impose an undue hardship upon her, pursuant to 11 U.S.C. § 523(a)(8). The motion for reconsideration is granted, and Durrani’s debt to ECMC is discharged.

Section 523(a)(8) requires a debtor seeking a hardship discharge based on a medical condition to provide evidence beyond her own testimony about the condition and its effect on employment.

Folsom v. United States Department of Education (In Re Folsom) · filed 2004-07-21(a)(8)

A debtor who seeks a hardship discharge based on a medical condition must present more than the debtor’s testimony as to the existence of the medical condition and its effect on the debtor’s ability to maintain employment in order to satisfy the second prong of Brun-ner.

Section 523(a)(8)’s undue-hardship test considers a debtor’s income from every source.

Storey v. National Enterprise System (In Re Storey) · filed 2004-07-29(a)(8)

By definition, any “undue hardship” analysis under § 523(a)(8) must take into account a debtor’s income, no matter the source.

Section 523(a)(8) requires a separate undue hardship analysis for each unconsolidated student loan.

Educational Credit Management Corp. v. Kelly (Kelly) · filed 2004-07-21(a)(8)

Based on the plain meaning of “such debt” in § 523(a)(8), we conclude that the Bankruptcy Court correctly treated the loans as several rather than joint, in the absence of any evidence that the student loans were consolidated.

A debtor’s preference for private schooling does not make tuition a necessary expense when assessing undue hardship under § 523(a)(8).

Educational Credit Management Corp. v. Savage (In Re Savage) · filed 2004-07-22(a)(8)

Her preference appears sincere, but that alone is not sufficient to sustain the bankruptcy court’s implicit conclusion that foregoing this expense would constitute undue hardship within § 523(a)(8)’s meaning.

Section 523(a)(8) requires a finding of undue hardship before a court may discharge student loan debt, even partially.

In re: Miller v. · filed 2004-07-28(a)(8)

Section 523(a)(8) permits the discharge of student loans only upon a finding that denying such discharge would impose undue hardship on the debtor.

Section 523(a)(8) requires a finding of undue hardship before a court may discharge student loan debt, whether in full or in part.

In Re Patricia M. Miller, Debtor. Patricia M. Miller v. Pennsylvania Higher Education Assistance Agency, Student Servici · filed 2004-07-28(a)(8)

In sum, we stress that the requirement of undue hardship must always apply to the discharge of student loans in bankruptcy — regardless of whether a court is discharging a debtor’s student loans in full or only partially.

Eligibility for an income contingent repayment plan does not prevent a debtor from receiving an undue hardship discharge of student loans.

Limkemann v. U.S. Department of Education (In Re Limkemann) · filed 2004-08-09(a)(8)

Debtor is not required to forgo an undue hardship discharge by virtue of his eligibility for participation in an ICRP.

Section 523(a)(8) requires a debtor seeking an undue hardship discharge of student loans to show good faith efforts to repay them.

Cosner v. U.S. Department of Education (In re Cosner) · filed 2004-08-30(a)(8)

Because the Court finds that debtor failed to carry his burden most clearly on prong three good faith efforts to repay the loans and that failure alone is sufficient to deny discharge, the other two prongs will not be addressed.

A debtor's current inability to repay student loans does not establish undue hardship without additional circumstances showing that the inability is likely to persist for a significant part of the repayment period.

Katz v. Illinois Student Assistance Commission (In Re Katz) · filed 2004-08-31(a)(8)

The second prong is not met. There is no additional circumstance to indicate that the debtor’s state of affairs is likely to persist for a significant portion of the loan repayment period. As a matter of law the facts as found by the Bankruptcy Judge do not support a finding that the debtor will endure hardship if his student loans are excepted from discharge.

Under § 523(a)(8), an affordable income contingent repayment amount may defeat a claim that student loan payments impose undue hardship.

DeRose v. EFG Technologies & Educational Credit Management Corp. (In Re DeRose) · filed 2004-10-28(a)(8)

Given the 53-month history of $185 per month Chapter 13 payments and the fact that the Debtor is now earning more, there is no way that any Court could conclude that for this Debtor to pay $302.70 per month would constitute “undue” hardship.

Section 523(a)(8) requires proof of undue hardship before a court may discharge any part of a student loan.

Lowe v. ECMC (In Re Lowe) · filed 2004-09-09(a)(8)

Therefore, both in the instant matter and in any ensuing cases, this Court, based upon the Sixth Circuit’s decision in In re Miller, will not invoke its equitable powers under § 105(a) so as to effectuate a partial discharge of a student-loan obligation when, as here, the benefit of the relief is directed toward the debtor. Thus, while the equities in this matter seemingly call for an equitable adjustment of her student-loan obligations, the Court cannot provide such relief as the Debtor has failed to sustain her burden under the Brunner “undue hardship” test.

Section 523(a)(8) permits bona fide charitable contributions within § 548(a)(2)’s limits to count as reasonable expenses when assessing undue hardship.

McLaney v. Kentucky Higher Education Assistance Authority (In Re McLaney) · filed 2004-09-10(a)(8)

The court holds that where, as here, the debtors have a consistent history of bona fide charitable giving that is within the parameters of § 548(a)(2), those donations may be considered within the debtors’ reasonably necessary expenses under § 523(a)(8).

Section 523(a)(8) makes student loans nondischargeable unless repayment would impose an undue hardship, assessed under the totality of the circumstances.

Weller v. Texas Guaranteed Student Loan Corp. (In Re Weller) · filed 2004-11-02(a)(8)

Based on Debtor’s ability to substantially increase her monthly income in the foreseeable future along with the fact that Debtor has over 22 years remaining before she reaches retirement age, the Court concludes that it will not be an undue hardship on Debtor to pay the remaining amount owed on the consolidation loan.

Section 523(a)(8) permits an undue hardship discharge of student loans only if the debtor proves every element of the Brunner test.

Matthews v. Sallie Mae Servicing (In Re Matthews) · filed 2004-12-14(a)(8)

Hence, since each prong of the Brunner Test must be met, the Debtor does not qualify for an undue hardship discharge of her student loan debt under 11 U.S.C. § 523(a)(8).

Section 523(a)(8) permits discharge of student loan debt when repayment would impose an undue hardship on the debtor or the debtor’s dependents; the debtor must prove undue hardship by a preponderance of the evidence.

Easley v. Educational Credit Management Corp. (In Re Easley) · filed 2004-12-17(a)(8)

Under § 523(a)(8), certain student loans are nondischargeable unless repayment of the loan would impose an undue hardship on the debtor or her dependents. The burden of establishing undue hardship, by a preponderance of the evidence, is on the debtor.

Section 523(a)(8) generally excepts student loans from discharge unless repayment would impose undue hardship, assessed using the debtor’s circumstances at or near discharge.

In Re Root · filed 2004-12-17(a)(8)

The provisions of § 523(a)(8) operate as an exception to an exception to the debtor’s discharge. Ordinarily, a student loan of the kind described in that section survives the general discharge granted to the debtor. The debtor can, however, avoid that result by demonstrating that repayment of the loan would impose an undue hardship. That determination necessarily requires that the court focus on the debtor’s circumstances at or near the time of the entry of the order of discharge.

Section 523(a)(8) makes certain student loans nondischargeable unless repayment would impose an undue hardship on the debtor or the debtor’s dependents.

Holmes v. NCO Financial Systems, Inc. (In Re Holmes) · filed 2004-12-27(a)(8)

Under § 523(a)(8), certain student loans are nondischargeable unless repayment of the loan would impose an undue hardship on the debtor or his dependents.

Section 523(a)(8) does not require a debtor to use the income contingent repayment program to establish good faith for an undue hardship discharge.

Barrett v. Sallie Mae Servicing (In Re Barrett) · filed 2004-12-14(a)(8)

This Court finds that compliance with the ICRP is not necessary to establish good faith.

Section 523(a)(8) requires an individualized assessment of a debtor’s actual expenses when deciding whether student loan repayment would prevent a minimal standard of living.

Education Credit Management Corp. v. Howe (In Re Howe) · filed 2005-01-06(a)(8)

The bankruptcy court erred both in its application of the IRS Standards to Debtor’s finances and in simply adopting the IRS Standards, rather than conducting an individualized analysis of debtor’s expenses as is required by § 523(a)(8).

Section 523(a)(8) permits discharge of student loans for undue hardship when the debtor cannot maintain a minimal standard of living while repaying them, that condition is likely to persist, and the debtor made good-faith efforts to repay.

Educational Credit Management Corp. v. Durrani · filed 2005-02-01(a)(8)

In the Seventh Circuit, in order to meet the “undue hardship” requirement under 11 U.S.C. § 523(a)(8) a debtor must show that: “(1) the debtor cannot maintain, based on current income and expenses, a minimal standard of living for himself and his dependents if forced to repay the loans; and (2) additional circumstances exist indicating that this state of affairs is likely to persist for a significant portion of the repayment period of the student loans; and (3) the debtor has made good-faith efforts to repay the loans.”

Section 523(a)(8) makes student loan debt presumptively nondischargeable unless the debtor shows that excepting it from discharge would impose undue hardship.

In Re: Craig D. Hanson, Debtor-Appellant · filed 2005-02-02(a)(8)

Student loan debts are presumptively nondischargeable in bankruptcy proceedings. 11 U.S.C. § 523(a)(8). Debtors can overcome this presumption by making an affirmative showing that excepting the student loan debt from discharge would impose an undue hardship on the debtor or the debtor’s dependents.

Section 523(a)(8) permits discharge of student loans for undue hardship under the Brunner test, which requires circumstances showing that the hardship is likely to persist for a significant portion of the repayment period.

Oyler v. Educational Credit · filed 2005-02-03(a)(8)

The Bankruptcy Code allows discharge of student loans only when repayment “will impose an undue hardship on the debtor and the debtor’s dependents.” 11 U.S.C. § 523(a)(8). ... Given then, that the Brunner construct subsumes the criteria we have treated as distinct and independent, and that the Brunner formulation1 easily accommodates factors we look to in evaluating undue hardship, we opt to join other circuits in adopting the simpler rubric of the Brunner test. ... Applying the Brunner test, we conclude that Oyler fails its second prong, because he has shown no “additional circumstances . . . indicating that this state of affairs is likely to persist for a significant portion of the repayment period.”

Section 523(a)(8)’s undue hardship test considers the debtor’s income, ability to work, and good-faith efforts to repay student loans.

Staudenmaier v. Mae · filed 2005-02-11(a)(8)

The bankruptcy court did not err in including all of Staudenmaier’s income in its calculations. ... Furthermore, the bankruptcy court properly considered the impact of Staudenmaier’s disability and determined that, based on his employment history, Staudenmaier’s disability did not prevent him from working full-time. ... Finally, Staudenmaier has not made good faith efforts to repay his student loans.

Section 523(a)(8) requires a debtor seeking to discharge student loans to show undue hardship, including an inability to maintain a minimal standard of living, circumstances likely to persist, and good faith efforts to repay.

Educational Credit Management Corp. v. Gouge · filed 2005-02-22(a)(8)

The undersigned finds that a remand is warranted to allow the Bankruptcy Court to reapply the test and, in its discretion, to exercise its equitable authority to grant a partial discharge if it determines that repayment of the entire debt would constitute an undue hardship.

Section 523(a)(8)’s good-faith inquiry may weigh a debtor’s loan deferments against a prolonged failure to make voluntary payments or seek income-contingent repayment.

Matthews v. Sallie Mae Servicing (In Re Matthews) · filed 2005-01-06(a)(8)

The Plaintiffs final point of error holds that this Court did not properly consider, in analyzing whether a good-faith effort had been made to repay the student loans, that she had obtained deferments on her educational obligations. However, this fact was clearly acknowledged in this Court’s decision, but discounted because of two countervailing considerations: (1) the failure over a fairly considerable period of time to make any voluntary payments on her student-loan obligations; and (2) the Plaintiffs failure to attempt to participate in the Income Contingent Repayment Program. As such, the Plaintiffs last point of error is without merit.

Section 523(a)(8) excludes religious and significant charitable donations from expenses considered when deciding whether student loan debt imposes an undue hardship.

Fulbright v. United States Department of Education (In Re Fulbright) · filed 2005-01-07(a)(8)

As Congress did not provide for charitable giving in § 523(a)(8) as it did elsewhere in the Code, and indeed specifically excepted student loan debts from a Chapter 13 discharge after allowing charitable contributions in the confirmation process, this Court declines to follow the McLaney line of reasoning, and instead this Court holds that religious and significant charitable donations are per se not proper expenses in determining whether discharging student loan debt would result in undue hardship under § 523(a)(8).

Section 523(a)(8) assesses undue hardship based on the debtor’s circumstances at the time of discharge.

Woodcock v. Dept. of Education · filed 2005-03-21(a)(8)

The determination of dischargeability is best made at the time of discharge.

Section 523(a)(8) requires a debtor seeking a hardship discharge of student loans to establish all three prongs of the undue hardship test.

Wolde-Giorgis v. Educational Credit Management Corp. · filed 2005-04-04(a)(8)

The bankruptcy court correctly determined that appellant is not entitled to discharge his student loans because he failed to establish all three prongs of the undue hardship test. ... Appellant failed to satisfy the second prong of the undue hardship test in that he submitted no evidence that his alleged health conditions preclude employment.

Section 523(a)(8)'s undue-hardship exception does not apply when the debtor can repay student loans through a payment plan.

Schulstadt v. United States Department of Education (In Re Schulstadt) · filed 2005-04-06(a)(8)

For these reasons, the Court concludes that, through cooperation with the DOE on a payment plan, repayment of this debt is possible. Therefore, the complaint to discharge these student loans must be denied.

Section 523(a)(8) permits discharge of a government-guaranteed student loan when repayment would impose an undue hardship on the debtor.

Parker v. General Revenue Corp. (In Re Parker) · filed 2005-04-12(a)(8)

The Debtor does not and will not have the financial resources to make regular or reduced payments on her student loan and still maintain a minimal standard of living. To except this debt from discharge will impose an undue hardship on the Debtor, and for this reason the debt owed to SLGF is determined to be dischargeable.

Section 523(a)(8) permits discharge of student loans when repayment would impose an undue hardship; a debtor who lacked the ability to pay need not have made a minimum amount of payments to show good faith.

Vang v. UW Stout Student Business Services (In Re Xiong Vang) · filed 2005-04-15(a)(8)

There is no requirement that the debtor have paid a certain percentage or minimum amount of the loans at issue in order to demonstrate “good faith.” If the debtor has not had the financial ability to pay the debt, he will not be penalized as a result.

Section 523(a)(8) excepts student loans from discharge unless the debtor proves undue hardship.

Brosnan v. American Education Services (In Re Brosnan) · filed 2005-04-20(a)(8)

2. Plaintiffs debt to Defendants is excepted from Plaintiffs discharge and the debt is nondischargeable pursuant to 11 U.S.C. § 523(a)(8).

Section 523(a)(8) permits a court to count expenses for a family member who qualifies as a dependent when deciding whether repaying student loans would impose an undue hardship.

Doe v. Educational Credit Management Corp. (In Re Doe) · filed 2005-03-31(a)(8)

Where a debtor demonstrates that she is supporting a family member who qualifies as a dependent under the IRS guidelines and is listed on the debtor’s tax returns as a dependent, and where there is no evidence that the debtor has undertaken these obligations to avoid her obligations to creditors or has acted in bad faith, a court has no grounds to exclude these expenses in considering whether repayment of a student loan would be an undue hardship.