Kelly v. Sallie Mae, Inc.

Summarized by Joel Newell , Ballard Spahr, LLP
10 years 12 months ago

Citation:

2:11-cv-01263-RSL (9th CA February 27, 2015) Not for Publication

Tag(s):

Ruling:

The Ninth Circuit Court of Appeals reversed and remanded to the District Court with instructions to reinstate the partial discharge ordered by the bankruptcy court. The bankruptcy court's judgment was not illogical, implausible, or without support; therefore, the bankruptcy court was not clearly erroneous.

Procedural context:

Debtor appealed the District Court's order reversing the bankruptcy court's decisions to discharge part of her student loans as an undue hardship.

Facts:

The bankruptcy court and district court determined that the Debtor was unable to repay her student loans and maintain a minimal standard of living for an extended period of time. The Ninth Circuit Court of Appeals summarized a portion fo the relevant facts to include the Debtor had maximized her income, incurred only marginally excessive expenses, and paid thousands of dollars toward the student loans, and atl east investigated payment alternatives. The district court incorrectly concluded that the bankruptcy court had clearly erred in regards to the Debtors good faith effort to repay her student loans.

Judge(s):

BEA and MURGUIA, Circuit Judges, and KOBAYASHI, District Judge.

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