Reference no: EM131470662

Question: Between 1980 and 1987, Craig Hanson borrowed funds from Great Lakes Higher Education Corp. to finance his education at the University of Wisconsin. Hanson defaulted on the debt in 1989, and Great Lakes obtained a judgment against him for $31,583.77. Three years later, Hanson filed a bankruptcy petition under Chapter 13. Great Lakes timely filed a proof of claim in the amount of $35,531.08. Hanson's repayment plan proposed to pay $135 monthly to Great Lakes over sixty months, which in total was only 19 percent of the claim, but said nothing about discharging the remaining balance.

The plan was confirmed without objection. After Hanson completed the payments under the plan, without any additional proof or argument being offered, the court granted a discharge of his student loans. In 2003, Educational Credit Management Corp. (ECMC), which had taken over Great Lakes' interest in the loans, filed a motion for relief from the discharge. What is the requirement for the discharge of a student loan obligation in bankruptcy? Did Hanson meet this requirement? Should the court grant ECMC's motion? Discuss. [In re Hanson, 397 F.3d 482 (7th Cir. 2005)] After you have answered this problem, compare your answer with the sample answer given on the Web site that accompanies this text. Go to www.thomsonedu.com/westbuslaw/ele, select "Chapter 14," and click on "Case Problem with Sample Answer."