Bankruptcy Can’t Stop Student Loan Collections: 6th Circ.

Law360, Washington (March 12, 2013, 6:20 PM EDT) -- The Sixth Circuit affirmed on Tuesday that individuals cannot stop guarantors from collecting on consolidated student loans, determining that Educational Credit Management Corp. can still seek payment for a bankrupt man's student loans separate from the lender's requests.

In a published opinion, the three-judge panel determined that district and bankruptcy courts had correctly ruled that ECMC still retained guarantor rights against Thomas J. Alfes' debt despite a contrary ruling over lender SunTrust Banks Inc.'s rights in a prior related proceeding.

“Alfes' argument fails to recognize the...
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