Hedlund v. The Educational Resources Inst., No. 12-35258 (9th Cir. 2013)Annotate this Case
After filing for bankruptcy, plaintiff sought a discharge of his law student loans under 11 U.S.C. 523(a)(8). The bankruptcy court granted a partial discharge, but, on appeal, the district court reinstated the student loan debt in full as non-dischargeable. The district court ruled that plaintiff had not acted in good faith, which was one of the prerequisites for relief under section 523(a)(8). The court concluded that a good faith finding should be reviewed for clear error. The court also concluded that the district court's finding was not clearly erroneous where it relied on substantial evidence in the record and its factual inferences were permissible. Accordingly, the court reversed and remanded with directions.