Court Plays ‘Whack-A-Mole’ With Debtor’s Student Loans

A debtor must repay four of her student loans to National Collegiate Trust even though she believes that repayment will cause her a hardship, but the remaining 11 loans are dischargeable, the U.S. Bankruptcy Appellate Panel for the Eighth Circuit held Dec. 21 (Conway v. Nat’l Coll. Tr. (In re Conway), 2015 BL 418897, B.A.P. 8th Cir., 15-6029, 12/21/15).

Judge Thomas L. Saladino concluded that the bankruptcy court properly reviewed a complete year of debtor Chelsea Ann Conway’s income and expense records, adjusting some of the expenses, and concluded that the debtor had the ability to repay ...