A judgment of the Bankruptcy Appellate Panel (BAP) discharging a debtor from a debt resulting from a judgment against her for breach of contract with a university is affirmed and the opinion of the BAP, which held that the debt and the resulting judgment did not meet the criteria for a loan or educational benefit that are excluded from discharge under 11 U.S.C. section 523(a)(8), is adopted.
In a case arising from a “subprime” mortgage lender’s bankruptcy and liquidation due to fraudulent lending practices, a district court’s judgment is affirmed in part as to its holdings imposing liability on defendants for aiding and abetting a class-wide fraud perpetrated by bankruptcy debtor, and rejecting borrowers” claims for relief in the form of equitable and punitive remedies, as well as bankruptcy trustee”s claims for equitable relief under the Bankruptcy Code. A damages verdict is vacated and remanded for further proceedings on the proper calculation of “out-of-pocket” damages caused by bankruptcy debtor”s fraudulent lending scheme, to be proportionately attributed to defendants pursuant to the terms of a certain order.
In a turnover action in bankruptcy under 11 U.S.C. section 542 filed by debtor, judgments in favor of debtor on issues of liability and damages are affirmed, as: 1) debtor’s claim for return of standby letter of credit proceeds is property of the estate under section 542; and 2) the bankruptcy court’s calculation of damages is correct.