Court Struggles With Student Loan Bankruptcy IssuesAnna Christensen writes at the SCOTUS Blog: “At Tuesday’s oral argument in United Student Aid Funds v. Espinosa, the Court grappled with whether an order discharging student loan debt absent an adversary hearing and a finding of undue hardship—in clear contravention of the Bankruptcy Code—is void . . . Although Justice Alito was silent for much of the argument, it appeared that he was attempting to lay the groundwork for a consensus decision, as he queried whether lawyers including student debt in Chapter 13 plans could be sanctioned. Such a finding would allow the Court to avoid finding that the old orders were open to attack, yet prevent new lawyers from prospectively including nondischargable debt in bankruptcy plans.
|