Student loan borrowers won a significant battle when the federal first circuit found ECMC, a student loan monitor, abused the bankruptcy system in its collection of student loan debt. Hann v. ECMC, 711 F.3d 235 (1st Cir. 2013). Finding that Hann owed nothing, both a bankruptcy judge panel and the First Circuit Court of Appeals upheld sanctions against ECMC by the NH Bankruptcy Court. I thought this was going to be my first opportunity to argue in the US Supreme Court, but ECMC decided to not pursue a third appeal from the court decision just beneath it. Natalie Kittroeff of The New York Times published an article highlighting the Hann decision and ECMC’s overall ruthlessness in a story entitled “Loan Monitor is Accused of Ruthless Tactics” on January 1, 2014. Student loan borrowers facing balance disputes or other issues may want to consider a Chapter 13 bankruptcy. The burden of proof rules in Bankruptcy Court for resolving payment disputes are more favorable than those that exist in most state courts. If you are facing significant student loan debt, know your rights before the situation spirals out of control.
The above does not constitute legal advice for your particular situation. You should consult a student loan lawyer in your state. Richard Gaudreau is a bankruptcy and student loan lawyer admitted to practice in Massachusetts and New Hampshire and located in Salem, NH. I am a regular contributor to the Huffington Post on bankruptcy and student loan issues. I can be reached at (603) 893-4300 or at richard@attorneygaudreau.com.