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James E. Stern, a 35-year-old attorney, sought to discharge his student loans totaling over $100,000 under Chapter 7 bankruptcy, arguing undue hardship under Code § 523(a)(8). Stern, who recently closed his law practice due to rising malpractice insurance costs and moved to France with his wife, contended he could not maintain a minimal standard of living if forced to repay the loans. Defendants, TERI and ECMC (assignee of ASA), argued Stern failed the three-prong Brunner test for undue hardship. The court found that while Stern met the first prong (current inability to pay), he failed the second, as his financial hardship was not deemed long-term or beyond his reasonable control, particularly given his education, lack of disability, and his choice to move abroad rather than seek employment in the U.S. Consequently, the court denied both a full and partial discharge of his student loan obligations.
Stern v. Education Resources Institute Inc. (In Re Stern) is a workers' compensation case decided in United States Bankruptcy Court, N.D. New York. This case addresses legal issues related to compensation claims, benefits, and court rulings.
It is commonly referenced in legal research involving workers' compensation laws in United States Bankruptcy Court, N.D. New York.
Full Decision Text1 Pages
James E. Stern, a 35-year-old attorney, sought to discharge his student loans totaling over $100,000 under Chapter 7 bankruptcy, arguing "undue hardship" under Code § 523(a)(8). Stern, who recently closed his law practice due to rising malpractice insurance costs and moved to France with his wife, contended he could not maintain a minimal standard of living if forced to repay the loans. Defendants, TERI and ECMC (assignee of ASA), argued Stern failed the three-prong Brunner test for undue hardship. The court found that while Stern met the first prong (current inability to pay), he failed the second, as his financial hardship was not deemed long-term or beyond his reasonable control, particularly given his education, lack of disability, and his choice to move abroad rather than seek employment in the U.S. Consequently, the court denied both a full and partial discharge of his student loan obligations.
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