High Court To Hear Student Debt Discharge Challenge

Law360, New York (June 15, 2009, 12:00 AM EDT) -- The U.S. Supreme Court will attempt to resolve a split within the federal appellate circuit over whether Chapter 13 petitioners can discharge student-loan debt without proving repayment, a question federal student loan agencies fear could create a bankruptcy law quagmire.

The Supreme Court on Monday granted United Student Aid Funds Inc.'s petition for writ of certiorari in a challenge to the Ninth Circuit Court of Appeals' finding that Chapter 13 petitioner Fransisco J. Espinosa could discharge outstanding federal-aid debt to USA Funds by informing the agency...
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