The opinion of the court was delivered by: Honorable Valerie Baker Fairbank, U.S. District Judge
Joseph Remigio None Present Courtroom Deputy Court Reporter
ATTORNEYS PRESENT FOR PLAINTIFFS: ATTORNEYS PRESENT FOR DEFENDANTS: None Present None Present
PROCEEDINGS (IN CHAMBERS): COURT ORDER REVERSING FINAL ORDER OF UNITED STATES BANKRUPTCY COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA, CASE NO. 09-AP-01283-KT, DKT. #31
Pursuant to Rule 78 of the Federal Rules of Civil Procedure and Local Rule 7-15, the Court finds that this matter is appropriate for decision without oral argument.
The Court has received, read, and considered Appellant Educational Credit Management Corporation's ("ECMC") Opening Brief (dkt. #13) and related papers. Appellee Fabian T. Berryhill's brief was due on or before March 23, 2011. Dkt. #11. As of August 30, 2011, Berryhill has filed no brief in response.
According to the Notice of Appeal (dkt. #2), ECMC appeals from the following order of the bankruptcy court, No. 09-ap-01283-KT: Docket No. 31. ECMC contends the appeal presents one issue: whether the bankruptcy
court erred in discharging Berryhill's student loans. Appendix to Opening Brief ("OB"), (hereinafter, "Appx."), p. 321.*fn1
For the reasons stated herein, the Court REVERSES the bankruptcy court's order discharging Berryhill's student loans.
II. PROCEDURAL HISTORY & BACKGROUND
Appellee Fabian T. Berryhill filed a petition for bankruptcy on July 31, 2009. On August 3, he filed a Complaint against United Student Aid Funds, Inc., which later transferred all right, title and interest in the student loans at issue to Berryhill pursuant to the terms of the Federal Family Education Loan Program ("FFELP"). See Appx., pp. 82, 83-87. Berryhill filed the Complaint in order to discharge his student loan debt pursuant to 11 U.S.C. § 523(a)(8). Id. On October 5, 2010, the matter came before the bankruptcy court. By this time, the balance on the student loans was approximately $11,715.25. Appx., p. 207. The bankruptcy court granted judgment in favor of Appellee. See dkt. #6; see also dkt.
Berryhill took out the student loan in order to finance, in part, his B.S. in Business Administration from California State University, Dominguez Hills, which he earned in 2005. Appx., pp. 212, 241. Upon graduation and without full time employment secured, Berryhill moved in with family in Atlanta. Id. at 217. Between 2006 and 2007, Berryhill moved back to Los Angeles. Id. at 219.
Berryhill reported adjusted gross income to the IRS for the years 2005 ...