Blog # 8

Bankruptcy Ruling in Student Loan Case by Adam Liptak

Terms:
- bankruptcy: inability to charge all your debts as they come due; a legal process intended to insure equality amoung the creditors of a corporation declared to be insolvent.
- civil lawsuit: a lawsuit in which one does not need to prove criminal liability
- summons: call in a offical matter such as court.

Summary:

The Supreme Court made it eaier for people who say they cannot repay their student loans to recieve bankruptcy protection. Francisco J. Espinosa who is a airline ramp agent took out four student loans in 1988-1989 which totaled to 13,250 in order to attend trade school in Arizona. Four years after taking out the loan he files for protection under the bankruptcy laws, propsinf to repay the principal over five years without interest. Mr. Esponosa nor the Judge followeed the law of Chapter 13 of the Bankruptcy code for student loans. In Chapter 13 it sayd that "student loans should be discharged only if bakruptcy judge find that repayment would impose an 'undue hardship' ". Mr.Espinosa did not notify the lender which is requierd by law which would summons for a civil lawsuit. The lender did recieve notices from the court about Mr. Esponsa's propsal and the curts approval. The lender did not reject or appeal the debt of his loan. He finished payingoff theloan in 1997 the bankruptcy bank then discharged the interest he would have owed. The leander now years later is trying to re-open the case. The supreme Courts decision advanced by the federal government, more than 30 states and the student loans. United States Aids Fund said that this would gives others ideas of not having to pay their debts off.











http://www.nytimes.com/2010/03/24/us/24scotus.html