In an article published in the Daily Journal, Attorney Steven Werth and Public Counsel Supervising Attorney Magdalena Bordeaux discuss the need for the Supreme Court to re-examine student loan debt dischargeability.
Recently, a debtor in the Seventh Circuit filed a petition for writ of certiorari to the Supreme Court, in Tetzlaff v. Educational Credit Management Corporation, 794 F.3d 756 (7th Cir. July 22, 2015). Ms. Bordeaux and Mr. Werth examine the issues in that case, as well as issues that may make the Supreme Court willing, or unwilling, to hear the debtor’s appeal.
While there is a split among the Circuit courts as to how to analyze the dischargeability of student loan debt pursuant to 11 U.S.C. Section 523(a)(8), the underlying facts of Tetzlaff make it an imperfect vehicle for the Supreme Court to clarify the meaning of “undue hardship” as it appears in Section 523(a)(8).