Roger John Traversa v. Educational Credit Management Corporation
444 F. App'x 472
| 2d Cir. | 2011Background
- Traversa, a pro se debtor-attorney, seeks discharge of about $60,000 in student loans in bankruptcy court.
- Loans are presumptively nondischargeable under 11 U.S.C. § 523(a)(8).
- Bankruptcy Court found first Brunner prong met (cannot maintain minimal standard of living) due to unemployment, living with mother, and about $1,577/month Social Security income.
- Bankruptcy Court found second Brunner prong (likely to persist) not satisfied due to insufficient evidence that medical conditions would persist throughout the repayment period.
- Bankruptcy Court denied Traversa’s motions to seal portions of the record under § 107(b) and (c); District Court affirmed the decision; Traversa appeals.
- This appeal challenges Brunner prong satisfaction and ancillary sealing rulings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Traversa can discharge his student loans under Brunner. | Traversa argues exceptional circumstances show ongoing inability to repay. | Educational Credit Management Corp. contends conditions do not persist; record insufficient for hardship. | No; Brunner prongs not satisfied; discharge denied. |
| Whether the second Brunner prong is met given medical conditions. | Traversa asserts chronic disabilities render long-term inability to pay. | Record lacks medical documentation and clear persistence of disability. | Not met; evidence insufficient to show prolonged inability to repay. |
| Whether the district court properly reviewed sealing rulings. | Traversa challenges sealing orders. | No specific order identified; independent review finds no error. | affirmed; no error in sealing rulings. |
Key Cases Cited
- Brunner v. N.Y. State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) (three-prong test for undue hardship; burden by preponderance)
- Grogan v. Garner, 498 U.S. 279 (U.S. 1991) (standard of proof for dischargeability is preponderance of the evidence)
- In re Halstead Energy Corp., 367 F.3d 110 (2d Cir. 2004) (standard of review for bankruptcy appeals)
- In re Dana Corp., 574 F.3d 129 (2d Cir. 2009) (abuse of discretion standard for discretionary bankruptcy rulings)