October Term 2009 · Docket 08-1134
Can a bankruptcy court modify a confirmed plan to reduce student loan interest?
Creditors argue that confirmed plans bind debtors to full repayment. Debtors claim hardship allows courts to lower interest rates.
Verified source milestones
- — An official oral-argument transcript was verified.
- — An official oral-argument transcript was verified.
The arguments, in order
This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.
Argument 1 ·
What happened at the argument
Ms. Wanslee argued that student loans are non-dischargeable debts.
Mr. Meehan argued that confirmed plans must be enforced as written.
Mr. Heytens argued that statutory limits self-execute without court action.
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 10, lines 11-17 — Transcript, file page 10, lines 11-17
- Official Supreme Court Transcript — file page 10, lines 23-25 — Transcript, file page 10, lines 23-25
- Official Supreme Court Transcript — file page 18, lines 17-29 — Transcript, file page 18, lines 17-29
- Official Supreme Court Transcript — file page 29, lines 25-3 — Transcript, file page 29, lines 25-3
- Official Supreme Court Transcript — file page 3, lines 19-49 — Transcript, file page 3, lines 19-49
- Official Supreme Court Transcript — file page 3, lines 51-17 — Transcript, file page 3, lines 51-17
- Official Supreme Court Transcript — file page 3, lines 7-17 — Transcript, file page 3, lines 7-17
- Official Supreme Court Transcript — file page 4, lines 23-33 — Transcript, file page 4, lines 23-33
- Official Supreme Court Transcript — file page 5, lines 23-45 — Transcript, file page 5, lines 23-45
- Official Supreme Court Transcript — file page 59, lines 23-25 — Transcript, file page 59, lines 23-25
- Official Supreme Court Transcript — file page 59, lines 27-31 — Transcript, file page 59, lines 27-31
- Official Supreme Court Transcript — file page 59, lines 33-39 — Transcript, file page 59, lines 33-39
- Official Supreme Court Transcript — file page 59, lines 51-3 — Transcript, file page 59, lines 51-3
- Official Supreme Court Transcript — file page 6, lines 45-9 — Transcript, file page 6, lines 45-9
- Official Supreme Court Transcript — file page 6, lines 5-33 — Transcript, file page 6, lines 5-33
- Official Supreme Court Transcript — file page 7, lines 23-1 — Transcript, file page 7, lines 23-1
- Official Supreme Court Transcript — file page 8, lines 27-41 — Transcript, file page 8, lines 27-41
- Official Supreme Court Transcript — file page 9, lines 13-21 — Transcript, file page 9, lines 13-21
- Official Supreme Court Transcript — file page 9, lines 31-41 — Transcript, file page 9, lines 31-41
- Official Supreme Court Transcript — file page 9, lines 51-5 — Transcript, file page 9, lines 51-5
A citizen's guide to the whole case
What this case is about
This case tests whether bankruptcy courts can alter confirmed plans. The dispute centers on student loan interest rates. Creditors seek strict enforcement of plan terms. Debtors seek relief based on financial hardship.
Official sources for this section
- Official Supreme Court Transcript — file page 18, lines 17-29 — Transcript, file page 18, lines 17-29
- Official Supreme Court Transcript — file page 29, lines 25-3 — Transcript, file page 29, lines 25-3
- Official Supreme Court Transcript — file page 3, lines 19-49 — Transcript, file page 3, lines 19-49
- Official Supreme Court Transcript — file page 59, lines 27-31 — Transcript, file page 59, lines 27-31
How the case got here
The Supreme Court heard oral argument in this case on December 1, 2009.
Official sources for this section
- Official Supreme Court Transcript — file page 3, lines 7-17 — Transcript, file page 3, lines 7-17
- Official Supreme Court Transcript — file page 59, lines 51-3 — Transcript, file page 59, lines 51-3
What each side wants
Creditors want the court to enforce the original plan terms.
Debtors want the court to allow interest rate reductions.
Official sources for this section
- Official Supreme Court Transcript — file page 18, lines 17-29 — Transcript, file page 18, lines 17-29
- Official Supreme Court Transcript — file page 29, lines 25-3 — Transcript, file page 29, lines 25-3
- Official Supreme Court Transcript — file page 3, lines 19-49 — Transcript, file page 3, lines 19-49
- Official Supreme Court Transcript — file page 59, lines 27-31 — Transcript, file page 59, lines 27-31
What each side says
Creditors argue that confirmed plans are binding and final.
Debtors argue that hardship justifies modifying plan terms.
Official sources for this section
- Official Supreme Court Transcript — file page 18, lines 17-29 — Transcript, file page 18, lines 17-29
- Official Supreme Court Transcript — file page 29, lines 25-3 — Transcript, file page 29, lines 25-3
- Official Supreme Court Transcript — file page 3, lines 19-49 — Transcript, file page 3, lines 19-49
- Official Supreme Court Transcript — file page 59, lines 27-31 — Transcript, file page 59, lines 27-31
What the justices asked
Justice Ginsburg asked if creditors can waive hardship procedures.
Justice Scalia asked if a court error can be undone later.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 11-17 — Transcript, file page 10, lines 11-17
- Official Supreme Court Transcript — file page 10, lines 23-25 — Transcript, file page 10, lines 23-25
- Official Supreme Court Transcript — file page 3, lines 51-17 — Transcript, file page 3, lines 51-17
- Official Supreme Court Transcript — file page 4, lines 23-33 — Transcript, file page 4, lines 23-33
- Official Supreme Court Transcript — file page 5, lines 23-45 — Transcript, file page 5, lines 23-45
- Official Supreme Court Transcript — file page 59, lines 23-25 — Transcript, file page 59, lines 23-25
- Official Supreme Court Transcript — file page 59, lines 33-39 — Transcript, file page 59, lines 33-39
- Official Supreme Court Transcript — file page 59, lines 51-3 — Transcript, file page 59, lines 51-3
- Official Supreme Court Transcript — file page 6, lines 45-9 — Transcript, file page 6, lines 45-9
- Official Supreme Court Transcript — file page 6, lines 5-33 — Transcript, file page 6, lines 5-33
- Official Supreme Court Transcript — file page 7, lines 23-1 — Transcript, file page 7, lines 23-1
- Official Supreme Court Transcript — file page 8, lines 27-41 — Transcript, file page 8, lines 27-41
- Official Supreme Court Transcript — file page 9, lines 13-21 — Transcript, file page 9, lines 13-21
- Official Supreme Court Transcript — file page 9, lines 31-41 — Transcript, file page 9, lines 31-41
- Official Supreme Court Transcript — file page 9, lines 51-5 — Transcript, file page 9, lines 51-5
Why it matters
This case defines the finality of bankruptcy plans. It determines if debtors can escape fixed interest rates. It affects the stability of student loan repayment agreements.
Official sources for this section
- Official Supreme Court Transcript — file page 18, lines 17-29 — Transcript, file page 18, lines 17-29
- Official Supreme Court Transcript — file page 29, lines 25-3 — Transcript, file page 29, lines 25-3
- Official Supreme Court Transcript — file page 3, lines 19-49 — Transcript, file page 3, lines 19-49
- Official Supreme Court Transcript — file page 59, lines 27-31 — Transcript, file page 59, lines 27-31
What happens next
This article currently covers the argument record. Use the official docket link for later case activity.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 11-17 — Transcript, file page 10, lines 11-17
- Official Supreme Court Transcript — file page 10, lines 23-25 — Transcript, file page 10, lines 23-25
- Official Supreme Court Transcript — file page 3, lines 51-17 — Transcript, file page 3, lines 51-17
- Official Supreme Court Transcript — file page 3, lines 7-17 — Transcript, file page 3, lines 7-17
- Official Supreme Court Transcript — file page 4, lines 23-33 — Transcript, file page 4, lines 23-33
- Official Supreme Court Transcript — file page 5, lines 23-45 — Transcript, file page 5, lines 23-45
- Official Supreme Court Transcript — file page 59, lines 23-25 — Transcript, file page 59, lines 23-25
- Official Supreme Court Transcript — file page 59, lines 33-39 — Transcript, file page 59, lines 33-39
- Official Supreme Court Transcript — file page 59, lines 51-3 — Transcript, file page 59, lines 51-3
- Official Supreme Court Transcript — file page 6, lines 45-9 — Transcript, file page 6, lines 45-9
- Official Supreme Court Transcript — file page 6, lines 5-33 — Transcript, file page 6, lines 5-33
- Official Supreme Court Transcript — file page 7, lines 23-1 — Transcript, file page 7, lines 23-1
- Official Supreme Court Transcript — file page 8, lines 27-41 — Transcript, file page 8, lines 27-41
- Official Supreme Court Transcript — file page 9, lines 13-21 — Transcript, file page 9, lines 13-21
- Official Supreme Court Transcript — file page 9, lines 31-41 — Transcript, file page 9, lines 31-41
- Official Supreme Court Transcript — file page 9, lines 51-5 — Transcript, file page 9, lines 51-5
Official Court provenance
Official docket and case history · Official Supreme Court oral-argument detail page
Title and summary sources
- Official Supreme Court Transcript — file page 18, lines 17-29 — Transcript, file page 18, lines 17-29
- Official Supreme Court Transcript — file page 29, lines 25-3 — Transcript, file page 29, lines 25-3
- Official Supreme Court Transcript — file page 3, lines 19-49 — Transcript, file page 3, lines 19-49
- Official Supreme Court Transcript — file page 59, lines 27-31 — Transcript, file page 59, lines 27-31
- Official Supreme Court Transcript — file page 18, lines 17-29 — Transcript, file page 18, lines 17-29
- Official Supreme Court Transcript — file page 29, lines 25-3 — Transcript, file page 29, lines 25-3
- Official Supreme Court Transcript — file page 3, lines 19-49 — Transcript, file page 3, lines 19-49
- Official Supreme Court Transcript — file page 59, lines 27-31 — Transcript, file page 59, lines 27-31
Revision history
- Revision 1 · Official Transcript ·
Correction: Rewritten to the concise citizen-facing editorial standard.
- Revision 2 · Official Transcript ·
Correction: Migrated to the dated official Court activity contract without model use.