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...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.