United States v. Conard (In Re Conard)

MEMORANDUM AND ORDER

MERRITT S. DEITZ, Jr., Bankruptcy Judge.

For the first time under the new Bankruptcy Code we are asked to consider “undue hardship” as an affirmative defense in a suit seeking to have a federally-guaranteed student loan excepted from discharge.

Section 523(a) of the Code provides that a bankruptcy discharge will not extend:(8) to a governmental unit, or a nonprofit institution of higher education, for an educational loan, unless .

(B) excepting such debt from discharge under this paragraph will impose an undue hardship on the debtor.

Before examining the facts of the case…