Tingling v. Educational Credit Management Corp., No. 20-757 (2d Cir. 2021)Annotate this Case
The Second Circuit affirmed the district court's order affirming the bankruptcy court's denial of debtor's request to discharge her educational loans pursuant to 11 U.S.C. 523(a)(8). On appeal, debtor argues that she was deprived of due process because the bankruptcy court accepted the joint pretrial memorandum as agreed to and approved by all parties on July 31, 2018 and ultimately adopted it as the bankruptcy court's Pretrial Order, while declining to adopt other versions of the pretrial memorandum submitted unilaterally by debtor in the interim.
The court held that the bankruptcy court did not abuse its discretion in basing its Pretrial Order on the joint pretrial memorandum edited by both parties; it was not an abuse of discretion to disallow debtor from unilaterally modifying that joint pretrial memorandum, as the interests of justice in this case did not so require; and debtor failed to make the factual showing to establish "undue hardship" under Brunner v. N.Y. State Higher Educ. Servs. Corp., 831 F.2d 395, 396 (2d Cir. 1987), in order to discharge her educational loans.