Discharge in bankruptcy


Discussion:

Discharge in Bankruptcy. Jon Goulet attended the University of Wisconsin in Eau Claire and Regis University in Denver, Colorado, from which he earned a bachelor's degree in history in 1972. Over the next ten years, he worked as a bartender and a restaurant manager. In 1984, he became a life insurance agent, and his income ranged from $20,000 to $30,000. In 1989, however, his agent's license was revoked for insurance fraud, and he was arrested for cocaine possession. From 1991 to 1995, Goulet was again at the University of Wisconsin, working toward, but failing to obtain, a master's degree in psychology. To pay for his studies, he took out student loans totaling $76,000. Goulet then returned to bartending and restaurant management and tried real estate sales. His income for the year 2000 was $1,490, and his expenses, excluding a child-support obligation, were $5,904. When the student loans came due, Goulet filed a petition for bankruptcy. On what ground might the loans be dischargeable? Should the court grant a discharge on this ground? Why or why not?

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Business Law and Ethics: Discharge in bankruptcy
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