Biegler v. Educ. Credit Mgmt. Corp.

Bankruptcy Judgment Upheld; Undischarged Stafford Loans Entered Repayment in 1988

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MEMORANDUM DECISION AND ORDER I. INTRODUCTION Presently before the Court is Appellant Julia A. Biegler’s appeal from a June 8, 2018, Order of United States Bankruptcy Judge Margaret Cangilos-Ruiz following a trial held to determine the dischargeability of Appellant’s student loans. (Dkt. No. 1). Appellant challenges the bankruptcy court’s finding that her Stafford Loans were not discharged in her 1995 Chapter 7 bankruptcy. (Dkt. No. 15). Appellee Educational Credit Management Corporation (“ECMC”) cross-appeals, challenging the bankruptcy court’s finding that Appellant’s Auxiliary Loans to Assist Students (“Auxiliary Loans”) were discharged in her 1995 bankruptcy. (Dkt. No. 16). For the reasons set forth below, the bankruptcy court’s decision is affirmed. II. BACKGROUND Appellant filed for Chapter 7 bankruptcy protection on October 10, 1995 and obtained a general discharge. (Dkt. No. 5-75

4-5).¹ In 2015, Appellant filed a complaint with the Northern District of New York Bankruptcy Court, commencing an adversary proceeding to adjudicate the dischargeability of certain educational loans that had been scheduled in the 1995 bankruptcy. (Dkt. No. 5-19). These loans have since been assigned to ECMC, which contests their dischargeability. (Id. 20; Dkt. No. 5-8, 8). Appellant sought a declaration of dischargeability under 11 U.S.C. §523(a)(8)(A) (1995) which, at the time her bankruptcy petition, allowed for the discharge of student loans that had been in repayment for more than seven years, exclusive of any applicable suspensions, at the time of the filing of a bankruptcy petition. A. Appellant’s Enrollment Appellant began a doctoral degree program at Syracuse University (“SU”) in the fall of 1982. (Dkt. No. 5-30). She maintained full-time or half-time status through summer 1985. (Dkt. No. 5-5,

Biegler v. Educ. Credit Mgmt. Corp.

Bankruptcy Judgment Upheld; Undischarged Stafford Loans Entered Repayment in 1988

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