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Thursday, February 10, 2011

Ind. Decisions - 7th Circuit decides student loan bankruptcy case

In In re Busson-Sokolik, an 8-page decision, Judge Bauer writes:

This case comes to us as a direct appeal from the Eastern District of Wisconsin’s decision to affirm findings of the United States Bankruptcy Court for the Eastern District of Wisconsin. The courts below found: (1) that a $3,000 student loan which Dustin Busson-Sokolik received from the Milwaukee School of Engineering (“MSOE”) in 1999 was a nondischargeable debt under the United States Bankruptcy Code, and (2) that the school was entitled to collection costs and attorney’s fees in connection with the bankruptcy proceedings pursuant to the promissory note for the loan signed by Busson-Sokolik. The district court also: (1) denied a motion for sanctions against the school, and (2) imposed sanctions against Busson-Sokolik and his attorney, Chomi Prag. Busson-Sokolik and Prag appeal each of these determinations. After reviewing the district court’s application of the Bankruptcy Code de novo and the underlying factual findings in the case for clear error, we affirm. As to the district court’s imposition of sanctions against Busson-Sokolik and Prag, while we do not find any abuse of discretion in the court’s decision to impose sanctions in this case, we do find the amount of the sanctions assessed to be excessive and therefore hold that the sanctions be reduced by half.

Posted by Marcia Oddi on February 10, 2011 01:06 PM
Posted to Ind. (7th Cir.) Decisions