Carrion: Bankruptcy

In re Carrion (Bankruptcy)

United States Bankruptcy Appellate Panel of the Ninth Circuit

Published Opinion, (2019) 601 B.R. 523

File Date:
Filed 5/31/2019

A chapter 7 debtor wanted to eliminate his student loan debt claiming the loan was unenforceable against him. The bankruptcy court rejected his argument, but ruled that he was liable for only one-half of the educational loan based on Family Code section 916 and a marital settlement agreement (“MSA”) with his ex-wife. The creditor appealed and asked for an order that the debtor be responsible for the entire debt. The appellate panel agreed with the creditor and held that the bankruptcy court misapplied Family Code section 916. It concluded he was liable to the creditor for the entire debt even though the MSA said he was only responsible to pay half of that debt as between himself and his wife. The MSA did not bind the creditor, who was not a party to that agreement.


The case listed here was not handled by Walzer Melcher unless the description states that Walzer Melcher appeared as counsel.