Bar exam loans are dischargeable debt in bankruptcy proceedings, the U.S. Bankruptcy Court for the Eastern District of New York held March 24 (Campbell v. Citibank, N.A., 2016 BL 92290, Bankr. E.D.N.Y., 14-45990-CEC, 3/24/16).
These loans aren’t “educational benefits,” which are an exception to discharge under federal law, Judge Carla E. Craig wrote for the court.
Split With Courts.
The court split with bankruptcy courts in North Dakota, New Jersey, Alabama and Pennsylvania, which have held that an “educational benefit” is “any loan which relates in some way to education.”
This “broad interpretation” of discharge exceptions under ...
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