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Kring v. Citibank, N.A. (In Re Kring)
Citations: 208 B.R. 73; 1997 WL 214079Docket: 19-00585
Court: United States Bankruptcy Court, S.D. California; April 15, 1997; Us Bankruptcy; United States Bankruptcy Court
In the case of In re James and Diane Kring, the United States Bankruptcy Court for the Southern District of California denied the Debtors' request for a default judgment regarding the dischargeability of their student loans under 11 U.S.C. § 523(a)(8). The Debtors filed a Chapter 7 petition on August 2, 1996, and subsequently sought a determination on the dischargeability of two student loans totaling approximately $14,567.08. They claimed an inability to make payments due to circumstances beyond their control and requested a finding of undue hardship. Despite filing a complaint and serving it to the defendants, the Court returned the initial request for a default judgment unsigned due to a lack of competent evidence supporting their claims. The Debtors' later submissions simply reiterated their allegations without providing factual support. The Court emphasized that to qualify for undue hardship discharge, Debtors must demonstrate an inability to maintain a minimal standard of living while repaying the loans, the persistence of additional circumstances affecting their financial situation, and good faith efforts to repay the loans. The Court found no evidence meeting these criteria nor evidence that the bankruptcy petition was filed seven years post the commencement of the repayment period. Consequently, the request for default judgment was denied without prejudice, and the Court noted that the Alaska Student Loan Program was not a named defendant and was not shown to have been served.