In re: Gourlay, No. 11-8066 (6th Cir. 2012)
Annotate this CaseA Chapter 7 debtor instituted an adversary proceeding against Sallie Mae, Inc. (11 U.S.C. 523(a)(8)) to determine the dischargeability of a student loan (about $25,000). The bankruptcy court entered a default judgment against Sallie Mae and later denied a motion to set aside the judgment. The Sixth Circuit affirmed, holding that the district court acted within its discretion in rejecting an argument of excusable neglect. It is unclear whether Sallie Mae had no reasonable policy in place to see that mail was delivered to appropriate personnel or simply failed to apprise the court of that policy.Sallie Mae was not entitled to notice of a hearing on the motion for default judgment. Service was proper; it was an internal decision to have Sallie Mae's chief operating officer work at a location other than its listed principal address.