Business Law Today, Comprehensive 10th Edition by Roger LeRoy Miller

Exercise 4

Discharge. Francisco Espinosa filed for bankruptcy. His plan proposed to pay only the principal on his student loan and to discharge the interest. United Student Aid Funds, Inc. (the creditor), had notice of the plan and did not object. Without finding that payment of the interest would cause undue hardship, the court confirmed the plan. After the debts provided for by the plan were discharged, United asked the court to cancel the discharge and thus make Espinosa liable for the student loan debt. Should the court grant the request Why or why not