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No circuit split: The Second Circuit agrees with the Fifth and Tenth Circuits that only a subset of private student loans is automatically nondischargeable.
Although the arbitrator didn’t explicitly find willful and malicious injury, the nature of a successful claim for sexual discrimination supplied the required findings for nondischargeability.
Decision by Bankruptcy Judge Michelle Harner demonstrates the flaw in the Fourth Circuit’s rule requiring parallel proceedings in bankruptcy court and in arbitration when disputes are both core and non-core.
