Nielsen v. ACS, Inc., No. 12-6020 (8th Cir. 2012)Annotate this Case
Plaintiff Erik Nielsen appealed from an order of the bankruptcy court finding his student loan obligations to Educational Credit Management Corporation (ECMC) to be nondischargeable. Nielsen and his spouse filed a joint voluntary Chapter 7 case in 2009. In 2010, Nielsen commenced an adversary proceeding seeking a determination that his student loans were dischargeable based upon undue hardship. A motion to intervene was granted as to ECMC. After a trial, the bankruptcy court found that Nielsen failed to meet his burden of proof and denied his complaint. The Eighth Circuit Court of Appeals affirmed, holding (1) the bankruptcy court did not err in any of its factual findings, and (2) Nielsen failed to meet his burden of proving undue hardship under the totality of his financial circumstances.