Adam Brown | Bloomberg LawTraversa v. Educational Credit Management Corp. (In re Traversa), No. 10-4811, 2011 BL 278230 (2d Cir. Oct. 28, 2011) The United States Court of Appeals for the Second Circuit affirmed the denial of a debtor's request for a discharge of his student debt, holding that he failed to establish "undue hardship" under 11 U.S.C. § 523(a)(8), because there was insufficient evidence that his alleged medical conditions, which supposedly made him unemployable, were likely to persist.
Lower Court Rulings
Debtor Failed to Show Undue Hardship
(1) that the debtor cannot maintain, based on current income and expenses, a 'minimal' standard of living for herself and her dependents if forced to repay the loans; (2) that 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) that the debtor has made good faith efforts to repay the loans.
Second Circuit Affirms Lower Court Decisions
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