The Dental Mortgage wasn’t a consolidation financing since the their terms and conditions failed to explicitly cancel the underlying pupil personal debt
40. The Nies court reviewed the legislative history to date and emphasized the unique nature of educational loans that warranted protections under the Bankruptcy Code’s discharge provisions. Id. at 501. Nies notes that § 523 of the Bankruptcy Code was the biproduct of reforms to section 439A(a) of the Higher Education Act of 1965. Id. (quoting Into the lso are Shipman (Dep’t out-of Mental health v. Shipman), 33 B.R. 80, 82 (Bankr. W.D. Mo. 1983)). “[T]his direct link to the federal education statute is an excellent indication that the central issue in determining dischargeability is whether the funds were for educational purposes, not whether the funds constituted a loan.” Id. (quoting Shipman, 33 B.R. at 82). As such, Nies employs the substance of the transaction test to determine the purpose of the loan provided to the physician by the hospital. Id. at 501-06. Nies finds that the hospital had a business purpose and offered the loan to get the Debtor to come to Tift County. Id. at 505. It notes that the “use of the funds by a debtor is not determinative of whether . . . the loan is educational.” Id. at 502 (citing Murphy, 282 F.3d at 873.
Brand new Jubers’ mission is actually underscored of the their inability to help you file Internal revenue service Means 1098-E, which the Borrower would have to subtract the eye towards loan of her fees, until they certainly were instructed to do thus of the its bankruptcy the advice
41. (more…)