The remainder element of this post concentrates on taking a look at every one of the three sub-chapters of 523 (a)(8) relating to personal education loan debts. The first section of that it about three-area blog post is targeted on Area 523 (a)(8)(A)(i). Another and you can third areas talk about Section 523 (a)(8)(A)(ii) and you may Part 523 (a)(8)(B), correspondingly.
Section 523 (a)(8)(A)(i) (hereinafter “AI”) is the first sub-section of Section 523 (a)(8). The text of AI states that a debt incurred by an “an educational benefit overpayment or loan made, insured, or guaranteed by a governmental unit, or made under any program funded in whole or in part by a governmental unit or non-profit institution” is non-dischargeable.
The second use of the word “or” separates AI into two clauses. There are two notable distinctions between the two clauses. The first distinction is that the first clause is limited to “loans,” whereas “the second clause of AI concerns loan programs, [not] particular loans.” In re O’Brien 318 B.R. 258, 262 (S.D.N.Y. 2004) (emphasis added) (citations omitted). The other notable difference is that the first clause is limited to loans by a “governmental unit,” and the second clause includes governmental units and non-profit institutions. Continue reading “not, Personal bankruptcy Courts is actually divided on what constitutes “funding” that loan system”