STUDENT LOAN DISCHARGED: HEALTH A KEY FACTOR Durrani v. ECMC (Bankr. N.D. Il. 2004) Held: Debtor satisfied all 3 elements of the Brunner test and her student loan was discharged pursuant to §523(a)(8). Availability of income-contingent repayment plan did not preclude finding of undue hardship. Durrani suffers from diabetes, high blood pressure, high cholesterol, poor vision and osteoarthritis in one knee. She has a permanent handicapped parking placard from the Illinois Secretary of State. Durrani has consistently tithed to her congregation for over 20 years. In 2001, she tithed $1,706 and made additional offerings of $42. In 2002, she tithed $1,967 and made additional offerings of $37. Through May 18, 2003, she tithed $1,105 and made additional offerings of $23. The issues resolved in the proceeding were: 1. Whether, based on current income and expenses, Durrani could maintain a “minimal” standard of living for herself if forced to repay the loan; 2. Whether additional circumstances existed indicating that the prevailing state of affairs was likely to persist for a significant portion of the repayment period of the loan; and 3. Whether Durrani made good faith efforts to repay the loan. _______________________ TRUSTEE'S ATTORNEY CLAIMS $19K IN FEES TO COLLECT $14K IN FUNDS In re STRAND (9th Cir. 2004) Bruce Leichty, in his capacity as Counsel for a Chapter 7 Trustee, appealed the Bankruptcy Court’s order which, §330, awarded only 1/2 the compensation he requested in his final Fee Application. The Bankruptcy Court did not award the full amount requested because it concluded that Leichty pursued litigation that was not reasonable or necessary in its entirety. Held: The Bankruptcy Court did not abuse its discretion in making this determination. Decision: It is readily apparent that if the legal fees exceed the recovery, the Estate is not benefitted. Even if the potential for recovering Attorneys' Fees is included, incurring $19,065 in legal fees in exchange for the uncertain prospect of recovering $14,000 for a priority creditor holding a nondischargeable debt could reasonably be characterized as a “modest” benefit to the Estate.