Navient Beats Effort to Put It in Bankruptcy Over Student Loans

Navient Corp. beat back an attempt to force its debt collection unit into bankruptcy when a judge dismissed the complaints of three student-loan borrowers.

• U.S. Bankruptcy Judge Martin Glenn threw out the so-called involuntary petition. The borrowers claimed they were creditors entitled to force Navient Solutions into Chapter 11 because the company had collected money from them after their student loans were dismissed in bankruptcy
• Glenn ruled that any money Navient may owe the student borrowers was subject to a legitimate dispute, which means the borrowers can’t put Navient Solutions into bankruptcy in order to collect
• Advocates for borrowers ...