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Ayers v. U.S. Dep't of Defense (In re Ayers); Case No. 17-70928; A.P. No. 17-07035 1/8/2018

The Debtor filed an adversary proceeding against the U.S. Department of Defense and the U.S. Department of the Treasury seeking a declaration that her debt to the Department of Defense under the ROTC/SOAR program is dischargeable under 11 U.S.C. § 727 or alternatively that any such debt excepted from discharge under 11 U.S.C. § 523(a)(8) constitutes an undue hardship on the Debtor and should be discharged.  The Debtor also asserted that the Defendants’ actions were arbitrary and capricious and that no reason exists for disparate treatment of the Debtor and sought declaratory judgment that the Defendants’ decision to recoup certain expenses because of her disenrollment from the Air Force based solely on her sexual preference is in violation of 5 U.S.C. §706(2) and her right to due process and equal protection under the Fifth Amendment of the Constitution.  In response, the Defendants filed a motion to dismiss pursuant to Rule 12(b)(1) and 12(b)(6) of the Federal Rules of Civil Procedure. The Court granted the Defendants’ Motion to Dismiss in part and denied it in part, denied the Debtor’s Motion to Amend the Complaint as futile, but allowed the Debtor to amend her complaint as to whether the debt can be discharged as an undue hardship under the Brunner v. N.Y. State Higher Educ. Servcs. Corp. test.

Monday, January 8, 2018
Adversary Proceedings
Burden of Proof
Statute of Limitations
Student Loan