Earlier this month, three student loan borrowers filed an involuntary Chapter 11 petition under 11 U.S.C. § 303(b)(1) for Navient Solutions LLC, a student loan servicer. Three or more entities who each hold a claim against an involuntary debtor can file an involuntary bankruptcy petition on that debtor’s behalf if each claim is neither a contingent liability nor the subject of a bona fide dispute as to liability or amount. The borrowers alleged that Navient…
Continuing the trend of discharging student loan debt in the Eighth Circuit, Judge Shon Hastings, sitting special designation for the Bankruptcy Court for the District of Nebraska, discharged $89,525.00 of student loan debt of the Debtor, Ms. Mudd noting that Debtor met her “rigorous” burden of establishing undue hardship by a preponderance of the evidence. Analyzing the debtor’s undue hardship claim, the Court examined the unique facts and circumstances of the case and particularly assessed:…