Walker v. Sallie Mae Servicing Corp. (In re Walker), Case No. 10-2032, 2011 BL 213731 (8th Cir. Aug. 18, 2011) The United States Court of Appeals for the Eighth Circuit affirmed a judgment of the bankruptcy appellate panel ("B.A.P.") which affirmed the bankruptcy court’s judgment discharging a debtor’s student loan debt under the "undue hardship" provision of 11 U.S.C. § 523(a)(8). In doing so, the Eighth Circuit held that based on the totality of the circumstances, including debtor’s need to care for her five young children; her inability to work, if at all, until her autistic twins reached the age of majority; the staleness of her education by that time; and debtor’s need to maintain a minimal standard of living for her family, excepting her student loan debt from discharge would impose an undue hardship on her.
Debtor’s Student Loan and Family Circumstances
The Discharge Proceeding and Lower Courts’ Rulings
Section 523(a)(8) of the Bankruptcy Code
Temporal Scope of Undue Hardship Analysis
Net Income Calculations
Eighth Circuit Affirms Judgment
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