Hell Freezes Over: Clarence Thomas Has An Opinion... And It Was Unanimous!!!

[DeSwiss]

Supreme Court Rules Against Student Loan Industry

The Blog Of Legal Times | Posted by Tony Mauro | March 23, 2010 at 11:16 AM in Supreme Court



Rejecting the views of 33 states, the federal government, and the student loan industry, the Supreme Court today unanimously ruled in favor of a loan delinquent who used the bankruptcy laws to restructure his debt.

The decision in United Student Aid Funds v. Espinosa was the only ruling handed down today, and the Court is not expected to issue any rulings when it sits tomorrow, making it unlikely there will be any rulings again from the Court before March 30, the next decision day on which it will be in session. Several cases argued at the beginning of the term -- including First Amendment blockbusters United States v. Stevens, involving animal cruelty videos, and Salazar v. Buono, concerning religious symbols on public property -- remain undecided.

The student loan case decided today was argued Dec. 1, and the ruling was authored by Justice Clarence Thomas. In it, the Court said a bankruptcy court order that forgave part of the debt was valid even though the student did not show at an adversary proceeding that repayment would pose an "undue hardship." Thomas said the failure by Francisco Espinosa to initiate such a proceeding did deprive the loan company of a right granted by a procedural rule, but "did not amount to a violation of United's constitutional right to due process." The company had been notified of Espinosa's plan and did not object, Thomas noted.

http://legaltimes.typepad.com/blt/2010/03/supreme-court-rules-against-student-loan-industry.html">MORE

- Maybe President Obama's chastisement of the Court is working.

Naw, just kidding.......
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DeSwiss


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[upi402]

1. I can't say what I feel about the Supreme Court, except

that this court is an absolute disgrace. It'll go down in history... unless it rules in favor of Texas style history someday.

[Political Heretic]

3. This decision, however, was a good one.

[upi402]

6. good note

to end on, this decision. hope Obama doesn't pick an Alito type nominee(s).

[DeSwiss]

4. Agreed. The less said about this lousy court.....

...the better.

[Political Heretic]

2. I wasn't aware that you could restructure student loans under bankruptcy laws

Is it different for private loans vs. federal loans?

[DeSwiss]

7. Under Chapter 7.....

...one is generally not allowed to discharge such debts. The governments interests in being fully repaid being of prime consideration. However they have been allowed for re-structuring under an approved Chapter 13 bankruptcy plan which didn't lower the debt total, but rather recast the payment schedule so that it was more affordable to repay.

However, under the 2005 amendment to the bankruptcy laws the total debt may now be lowered to achieve affordability of the Chapter 13 plan. I believe that this is what this SCOTUS ruling was about -- the fact that the debtor didn't claim "an undue hardship" under the provisions of the law. I'm not aware in a practical sense about the changes in these laws since it's never happened to me. But in the course of my business I've had applicants apply for housing where their credit reports indicate that they were repaying student loans under such Chapter 13 plans and this is my understanding of the new law.

- More info on this topic may be found here: http://en.wikipedia.org/wiki/Bankruptcy#Chapters">U.S. Bankruptcy Laws - Chapters

[951-Riverside]

5. I thought his aides wrote his opinions.

I remember seeing a report about that on Nightline or 60 minutes.

[DeSwiss]

8. Yeah....

...but they let him take the credit.

- They know he can't spell very well since he didn't pay attention in college.....

[MilesColtrane]

9. Just look at that picture.

There's a man who needs more fiber in his diet.

[Paper Roses]

11. I think he is still troubled by that hair!! What a sour face.

I know the Supreme Court members have have a huge responsibility but why do they all look so dour? Yea, I know this is off topic but my first thought as I read this was his expression. Completely negative.

[NecklyTyler]

10. So Slappy is like a stopped clock

Like a stopped clock that occasionally shows the correct time, Slappy get one right. Thomas will still go down in history as a mental midget of the Supreme Court