Smyth v. Edamerica, Inc. (In re Smyth)

Summarized by Geoffrey Peters , Weltman, Weinberg & Reis Co., LPA
13 years 9 months ago

Citation:

20012 FED App. 0005P (6th Cir.)

Tag(s):

Ruling:

The Bankruptcy Appellate Panel for the Sixth Circuit upheld the decision of the bankruptcy court denying a Debtor's motion to reopen her bankruptcy case. Debtor requested the case to be reopened in order for her to pursue an alleged violation of the discharge injunction by the holder of her student loans. The Panel found that no relief could be afforded to the Debtor as student loans are not discharged in bankruptcy absent a determination of undue hardship in an adversary proceeding. The Panel found the appeal to be frivolous but declined to award sanctions as the Sixth Circuit has not addressed the precise substantive issue raised by Debtor in this appeal.

Procedural context:

Appeal to the Bankruptcy Appellate Panel of the Sixth Circuit, from the United States Bankruptcy Court for the Middle District of Tennessee, at Nashville.

Facts:

Debtor filed a chapter 7 bankruptcy petition in July 2003. Prior to discharge, Debtor amended her schedules to include a creditor holding a student loan debt. Debtor received a discharge in April 2004. The bankruptcy court entered a final decree and closed the case in May 2004. In February 2011, Debtor filed a motion to reopen her chapter 7 case, not to seek a discharge of her student loan, but to pursue sanctions for an alleged violation of the discharge injunction. The bankruptcy court denied the motion to reopen. Debtor appealed the decision. The student loan creditor filed a motion for fees and costs alleging that the Debtor's appeal was frivolous.

Judge(s):

Bankruptcy Appellate Panel, Judges Fulton, McIvor, and Shea-Stonum.

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