McKay v. Ingleson

Summary

The Ninth Circuit held that a student's agreement with Vanderbilt University to defer payment for tuition, housing, dining, and related charges constituted a loan under 11 U.S.C. § 523(a)(8). Because the student loan was nondischargeable, the university's attorney did not violate the bankruptcy discharge injunction by attempting to collect it.

Holdings

1. The Agreement constituted a loan for educational expenses even though it operated as a deferred-payment or revolving-credit arrangement and no money was directly exchanged between Vanderbilt and McKay.
2. Ingleson could not have violated the discharge injunction by attempting to collect the account because McKay's student loan was excepted from discharge under § 523(a)(8).

Questions Presented

1. Whether McKay's account and deferment agreement with Vanderbilt constituted a loan under 11 U.S.C. § 523(a)(8).
2. Whether the collection action violated the bankruptcy discharge injunction under 11 U.S.C. § 524.

Disposition

affirmed