This morning the Court issued a unanimous ruling in United Student Aid Funds v. Espinosa (08-1134), affirming the lower court in an opinion by Justice Thomas.  The Justices held that a bankruptcy court has the authority to discharge a student loan debt even if the student has not filed a claim of undue hardship.

The full text of the opinion follows the jump.

CORRECTION: For those following the LiveBlog this morning, the next date opinions will be released is Tuesday, March 30, not Monday, March 29. FURTHER CORRECTION: Today’s ruling in the student loan case is confined primarily to the situation where a discharge of such a debt has become final without the creditor using its option to challenge it at the time.  It makes clear that bankruptcy courts may discharge a student loan debt only if they find it is an undue hardship to require payment.

United Student Aid Funds v. Espinosa, No. 08-1134

Posted in Merits Cases, Uncategorized