The new court hence granted Hann’s actions having summation view on liability and you may denied ECMC’s


The new court hence granted Hann’s actions having summation view on liability and you may denied ECMC’s

You to definitely facts, in conjunction with brand new bankruptcy proceeding court’s “comprehensive review of this new Claim Objection and Claim,” persuaded brand new BAP one “the fresh new bankruptcy proceeding court found that there was no obligation” remaining towards the money at the time of the brand new petition day

The bankruptcy court assented with Hann, concluding that Allege Purchase reflected the earlier judge’s devotion that “the duty [remaining] for the [ECMC’s] allege ? try no.” The legal in addition to detailed ECMC’s repeated failure to spot or quantify a great financial obligation obligations. Hann following waived their kept claims and you can, at court’s assistance, registered a keen affidavit from costs and you may can cost you, that ECMC objected. The brand new judge registered finally view for Hann, purchasing “you to she owes absolutely nothing to the brand new offender” and you may “awarding [her] will cost you and you may costs ? due to the fact a remedial sanction to own [ECMC’s] solution of Case of bankruptcy Code’s launch injunction.” Find eleven You.S.C. § 524(a) (doing an automatic injunction facing efforts designed to collect an already discharged personal debt).

ECMC appealed to the bankruptcy appellate committee (BAP), hence confirmed. Hann v. Educ. Credit Mgmt. Corp. (Inside the re Hann ), 476 B.Roentgen. 344 (B.An effective.P. very first Cir.2012). The latest BAP mentioned that the primary question wasn’t perhaps the obligations was dischargeable, but instead if ECMC’s claim was disallowed “on the grounds of pre-petition commission in full.” Id. during the 356. Therefore, release try irrelevant because “you do not have to except of discharge a financial obligation which don’t is obtainable.” Id. (solution and you can emphasis omitted). Having framed the trouble by doing this, the fresh new BAP ascribed “important characteristics” to the fact that Hann had objected so you’re able to ECMC’s allege for the the floor one she had currently paid the debt in full. Id. Correctly, the newest BAP verified the fresh award out-of sanctions, describing one to ECMC’s continued collection factors in the face of new Claim Acquisition “constituted a punishment of your own bankruptcy proceeding techniques and defiance of your own court’s authority.” Id. in the 360. ECMC now appeals the new BAP’s decision.

Ropes & Grey, 65 F

One or two rules ability prominently on the parties’ arguments: claim allotment (otherwise disallowance), and that “income solely toward rights from a collector facing property of an excellent debtor’s case of bankruptcy house”; and you will dischargeability, and that “inquiries whether a collector could possibly get, adopting the entryway out-of bankruptcy discharge, continue to go after the fresh new enforcement of its personal debt as the a personal liability contrary to the debtor.” Gregory v. U.S. Dep’t off Educ. (In the re Gregory ), 387 B.Roentgen. 182, 188 (Bankr.N.D.Ohio 2008). Dischargeability, not, isn’t in question right here. ECMC says your BAP mistook this new disallowance from ECMC’s claim for a discharge, and therefore mistakenly kept “one your order disallowing a part thirteen claim always discharges a keen fundamental nondischargeable financial obligation.” However the BAP said zero such as for instance matter. Instead, it concluded that the challenge in such a case “isn’t whether or not an excellent nondischargeable financial obligation shall be released by advantage of its disallowance, however, if or not there is a debt after all the spot where the claim could have been disallowed due no credit check payday loans in Grafton ND to pre-petition payment in full.” 476 B.Roentgen. at the 356 (focus added). 2 And ECMC now agrees one a claim disallowance acquisition is also melt an underlying nondischargeable debt if it is based on a good factual discovering that the debt has been repaid-ECMC only disputes whether or not that basically occurred in this instance. Thus, the main matter here’s merely perhaps the Claim Acquisition disallowed ECMC’s allege on to the floor one to Hann had currently paid off her loans (in which particular case dischargeability is actually beside the area). I imagine you to court matter de- novo. Select Sharfarz v. Goguen (From inside the lso are Goguen ), 691 F.3d 62, 68 (very first Cir.2012); cf. Monarch Life Ins. Co. v. three-dimensional 973, 983 (first Cir.1995). We up coming target the challenge from sanctions. step 3


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