Massachusetts bankruptcy judge requires flexibility from both the government and the debtor who is saddled with huge student loans.
Courts are split on whether having nondischargeable debts gives an individual chapter 7 debtor standing to object to claims.
On an upcoming certified appeal, the Eleventh Circuit can decide whether violating a PACA trust is a ‘defalcation while acting in a fiduciary capacity’ that makes a debt nondischargeable.