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IN RE RAIMONDO

Bankruptcy No. 92-12565 B. Adv. No. 92-1261 B.

183 B.R. 677 (1995)

In re Samuel L. RAIMONDO, Debtor. Samuel L. RAIMONDO, Plaintiff, v. NEW YORK STATE HIGHER EDUCATION SERVICES CORPORATION; State University of New York; Key Bank, Defendants.

United States Bankruptcy Court, W.D. New York.

June 16, 1995.

Attorney(s) appearing for the Case

Jeffrey Freedman (Paul M. Pochepan, of counsel), Buffalo, NY, for Samuel L. Raimondo.

John G. Binseel, Office of Counsel, N.Y.H.E.S.C., Albany, NY, for N.Y. State Higher Educ. Services Corp.

Dennis C. Vacco, Atty. Gen. (Ronald F. Kennedy, Asst. Atty. Gen., of counsel), State University of N.Y., N.Y. State Dept. of Law, Albany, NY, for State University of N.Y.

CARL L. BUCKI, Bankruptcy Judge.

This case cogently illustrates a problem that is common to many disputes involving the hardship discharge of student loan obligations. At issue is whether this Court is to apply standards of hardship only to full repayment of the existing obligation as a single, unalterable claim, as opposed to payment of any lesser amount. If viewed from a different perspective, the issue becomes whether hardship discharge is an all-or-nothing proposition...

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