Educational Credit Management Corp. v. Coleman (In re Coleman)

ORDER AFFIRMING THE BANKRUPTCY COURT’S DECISION

I. INTRODUCTION

Appellee Cathy Coleman (“Debtor”) filed this adversary proceeding in the United States Bankruptcy Court for the Northern District of California (“Bankruptcy Court”) against Appellant Educational Credit Management Corporation (“ECMC”), the holder of Debtor’s student loan promissory notes, seeking a partial discharge of her student loan debt (“Debt”) under 11 U.S.C. § 523 (a)(8) on the ground that excepting her Debt from her bankruptcy discharge would constitute an undue hardship. ECMC then moved to dismiss the Complaint, alleging that the Bankruptcy Court lacked jurisdiction. The Bankruptcy Court denied ECMC’s motion.

Presently before the Court is ECMC’s appeal from the Bankruptcy Court’s order denying the motion to dismiss.

For the reasons stated herein, the Court AFFIRMS the decision of the Bankruptcy Court, to which forum the Court REMANDS the action.

II. BACKGROUND

In 2004, Debtor filed a voluntary bankruptcy petition with the United States Bankruptcy Court for the Northern District of California seeking relief under Chapter 13 of the Bankruptcy Code. See Excerpts of Record, Document 4 at 2 (“ER”). The…