Wells v. Illinois ex rel. Illinois State Scholarship Commission
Docket: Nos. 83 C 7177, 80 B 14841 and 82 A 1357
Court: United States Bankruptcy Court, N.D. Illinois; February 2, 1984; Us Bankruptcy; United States Bankruptcy Court
Plaintiff, a bankrupt individual, had a debt of $5,573.20 for an educational loan from the Illinois State Scholarship Commission, which Bankruptcy Judge Toles discharged on June 24, 1983. Judge Toles determined that the plaintiff and her family were living at poverty level, and her efforts to repay part of her student loans demonstrated good faith. He concluded that requiring repayment would impose an undue hardship on the plaintiff and her dependents, as permitted under 11 U.S.C. 523(a)(8)(B). The findings of fact and conclusions of law made by Judge Toles were supported by evidence and were not deemed "clearly erroneous" under Rule of Bankruptcy Procedure 8013. Consequently, the defendant's appeal was dismissed with prejudice, affirming the discharge of the plaintiff's debt.