《楊清泉律師專欄》STUDENT LOAN OF $5,909 BECOMES $80,290 BECAUSE OF …(Part I)
楊清泉律師事務所
STUDENT LOAN OF $5,909 BECOMES $80,290 BECAUSE OF FRIVOLOUS APPEAL BY DEBTOR
Student loans are not dischargeable in bankruptcy. That is the general rule. Some debtors may qualify to discharge student loans if they can satisfy a three-prong test proven in an adversarial proceeding. But what happens if debtor refuses to acknowledge that a student loan is not dischargeable despite a bankruptcy court judgment saying so and he appeals that judgment? It depends if the appeal is frivolous or meritorious.
In Re Busson-Sokolik, Chapter 7 debtor and his attorney were found to be jointly and severally liable for sanctions of $30,971. The sanctions were imposed for the frivolous pursuit of an appeal. The 7th Circuit Court of Appeals found that the debtor’s numerous procedural errors constituted abuse and warranted the imposition of sanctions.
In April, 2005, the Milwaukee School of Engineering sued the debtor to recover the unpaid balance on his student loan and obtained a default judgment of $5,909. In June 2005, debtor filed for Chapter 13 relief. The case was converted to Chapter 7 in May 2006 and in August 2006 he filed an adversary case seeking to discharge the student loan. The bankruptcy court ruled that the debt was not excepted from discharge, and determined that the debtor owed $16,248 including costs and attorney fees.
Debtor appealed. Delays in filing resulted in series of motions alleging misconduct on both sides. The district court denied the debtor’s motion for sanctions, and granted the school’s motion for costs and fees under Rule 8020, finding that the debtor’s appeal was frivolous. The court affirmed the bankruptcy court’s ruling and ordered the debtor and his attorney to pay $80,290 to the school. Thus, a student loan of $5,909 became a non-dischargeable debt of $80,290.
The debtor and his attorney appealed. Debtor argued that there was no student loan. In other words, he refused to admit that the loan was a student loan despite a bankruptcy court ruling saying that it was a student loan. Talk about being hard- headed. While it is true that in America you have the right to disagree, the exercise of that right may cost you a lot of money.
《楊清泉律師專欄》STUDENT LOAN OF $5,909 BECOMES $80,290 BECAUSE OF FRIVOLOUS APPEAL BY DEBTOR (Part II)
Student loans are not dischargeable in bankruptcy. That is the general rule. Some debtors may qualify to discharge student loans if they can satisfy a three-prong test proven in an adversarial proceeding. But what happens if debtor refuses to acknowledge that a student loan is not dischargeable despite a bankruptcy court judgment saying so and he appeals that judgment? It depends if the appeal is frivolous or meritorious.
In Re Busson-Sokolik, Chapter 7 debtor and his attorney were found to be jointly and severally liable for sanctions of $30,971. The sanctions were imposed for the frivolous pursuit of an appeal. The 7th Circuit Court of Appeals found that the debtor’s numerous procedural errors constituted abuse and warranted the imposition of sanctions.
In April, 2005, the Milwaukee School of Engineering sued the debtor to recover the unpaid balance on his student loan and obtained a default judgment of $5,909. In June 2005, debtor filed for Chapter 13 relief. The case was converted to Chapter 7 in May 2006 and in August 2006 he filed an adversary case seeking to discharge the student loan. The bankruptcy court ruled that the debt was not excepted from discharge, and determined that the debtor owed $16,248 including costs and attorney fees.
Debtor appealed. Delays in filing resulted in series of motions alleging misconduct on both sides. The district court denied the debtor’s motion for sanctions, and granted the school’s motion for costs and fees under Rule 8020, finding that the debtor’s appeal was frivolous. The court affirmed the bankruptcy court’s ruling and ordered the debtor and his attorney to pay $80,290 to the school. Thus, a student loan of $5,909 became a non-dischargeable debt of $80,290.
The debtor and his attorney appealed. Debtor argued that there was no student loan. In other words, he refused to admit that the loan was a student loan despite a bankruptcy court ruling saying that it was a student loan. Talk about being hard- headed. While it is true that in America you have the right to disagree, the exercise of that right may cost you a lot of money.
《楊清泉律師專欄》STUDENT LOAN OF $5,909 BECOMES $80,290 BECAUSE OF FRIVOLOUS APPEAL BY DEBTOR (Part II)
把此文章分享到：
關於 楊清泉律師事務所
