In re McGinnis (02-70055)

The Court held trial on Sarah P. McGinnis’ ("Plaintiff") Complaint to Determine Dischargeability of Student Loan Debt against Pennsylvania Higher Education Assistance Agency ("Defendant"). The Court, analyzing "undue hardship" under the Brunner test in view of Education Credit Management Corp. v. Carter (In re Carter), 279 B.R. 872 (M.D. Ga. 2002), held Plaintiff’s debt to be dischargeable as an undue hardship. The Court cited Plaintiff’s short-term and long-term financial difficulties due to "a total foreclosure of job prospects in her area of training," as well as her good faith effort towards repayment, as reasons for holding that Plaintiff would be subject to an undue hardship if she were forced to repay her student loans.

Friday, February 14, 2003