Walker v. Educational Credit Mgmt., No. 10-2032 (8th Cir. 2011)
Annotate this CaseThe Educational Credit Management Corporation (ECMC) appealed from the judgment of the bankruptcy court, later affirmed by the Bankruptcy Appellate Panel (BAP), which discharged the student loan debt of debtor under the "undue hardship" provision of 11 U.S.C. 523(a)(8). The court held that it was not clear error to consider debtor's financial condition from the date of discharge to the date debtor sought undue hardship relief. The court also held that there was no clear error in not calculating debtor's husband's part time income where debtor and her husband stipulated their adjusted gross income in 2007. Even when the payroll deductions were excluded, the expenses of the debtor and her dependents outstripped her available resources. Therefore, the court held that, in light of the overall circumstances, excepting debtor's student loan debt from discharge would impose an undue hardship on her.
Court Description: Bankruptcy - discharge under section 523(a)(8). Educational Credit Management Corporation appeals from discharge of student loan under "undue hardship" provision of section 523(a)(8). It was not clear error to consider debtor's financial condition from date of discharge to date debtor sought undue hardship relief. No clear error not to calculate and include husband's part time income in light of parties' stipulation. Even considering errors in stipulated gross adjusted income figures, the expenses outstrip available resources. Despite concerns about the reasonableness of expenses, in light of overall circumstances, excepting student loan debt from discharge would impose an undue hardship. Judge Colloton concurs in the judgment.
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