By: Michael L. Moskowitz and Melissa A. Guseynov

We have reported many times on the judicial treatment of student loan dischargeability in bankruptcy. Last year we reported in detail on the January 2020 decision by Chief Bankruptcy Judge Cecilia Morris wherein she analyzed the treatment of student loan debt in bankruptcy under the “undue hardship” exception of section 523(a)(8) of the Bankruptcy Code. See article here. Chief Judge Morris determined that, based on the seminal Brunner test, a debtor with a gross annual income of $37,500 could discharge over $220,000 of student loan debt. In re Rosenberg, Case No. 18-09023 (Bankr. S.D.N.Y. Jan. 7, 2020). Last month, however, District Court Judge Philip M. Halpern overturned Judge Morris’ decision, finding that neither the debtor nor the lender were entitled to summary judgment. Rosenberg v. Educational Credit Management Corp., Case No. 20-cv-00688 (S.D.N.Y. Sept. 29, 2021). Read the full opinion here.