{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

ARE18 homework 7

ARE18 homework 7 - and couldn't make the payments She went...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
ARE 18 February 23, 2011 Homework 7 First of all, in bankruptcy, the bankruptcy court is a court of equity so judges can fashion a remedy that fit the case. This however, raises the question, when is a debtor subject to discharge, or allowed out of a previously made loan? At the end of a chapter 13 plan, if the debtor completes the plan of reorganization, and makes all of the payments they will get the discharge, but in order to get this discharge they must complete their plan of reorganization without a complaint from the creditor. If the debtor files with the court a plan of reorganization, and the creditor doesn't object then the plan get approved and the student loan would go away. Since Cathy Coleman missed the payments of the plan, the plan would be dismissed, not discharged. So instead, she converted her plan to a chapter 7 since she got laid off
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: and couldn't make the payments. She went back to the court and asked to have the loans discharged, however she could not present a reasonable undue hardship worthy enough to get her approved since she was not permanently disabled or unable to ever return to work. With respect to a debtor, the goal of bankruptcy is to give someone a fresh start, but to also keep it fair while doing so. Because of these reasons, the loans did not go away; Cathy was unable to prove that she had an uncontrollable hardship and therefore is still in debt with Educational Credit Management Corp. The argument Cathy could make is that she has no income, and therefore cannot pay her student loans, and since there is no statute of limitations on student loans - they can collect them whenever, allotting her more time to find a job and repay the loans....
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online