US Supreme Court takes up important student loan case
Submitted by Pauper on Sun, 06/04/2006 - 9:57am.
US Supreme Court has been asked to rule on an important Student Loan bankruptcy case. (In re Reynolds) If the Court upholds the lower court ruling the standards for discharging a student loan in bankruptcy will be greatly broadened and loosened.
Here is the link to the docket report at the Supreme Court. We may know the answer by the end of June 2006.
http://www.supremecourtus.gov/docket/05-1361.htm
Link to the case as it was decided by the 8th Circuit Bankruptcy Court of Appeals.
(PDF file-21 pages)
http://www.ca8.uscourts.gov/opndir/05/10/043192P.pdf
SCOTUS denies Cert
The SCOTUS has denied Cert in the Reynolds case. This means that there is a new standard of "Totality of Circumstances" in the 8th Circuit and "Brunner" is the test in the other federal circutits.
The govt was afraid they would lose and the new, easier test would become law of the land so they dropped the matter.
Good news if you live in the 8th Circuit and Reynolds can be used as a guide for cases in the other circuits but it is not controlling law in the other circuits unfortunately.
God forgives--Why doesn't the Government?