In re: Busson-Sokolik

Dist. Ct. did not err in affirming Bankruptcy Ct. decision finding that debtor's $3,000 student loan was non-dischargeable debt under Bankruptcy Code. Ct. rejected debtor's claim that loan was dischargeable because loan proceeds were not used for educational purposes, after finding that instant loan was educational where loan was part of aid package that included scholarship and grant money earmarked for completion of debtor's education at creditor-college, and where debtor had to be student to obtain loan. Moreover, Bankruptcy Ct. did not err in imposing on debtor collection costs and attorney fees generated by creditor where both items were included in promissory note for instant loan. Also, while Dist. Ct. could properly sanction debtor and his attorney for committing several procedural errors during appeal of Bankruptcy Ct. order, instant sanction of $61,942.50 (which Ct. of Appeals reduced by 50%) was excessive in view of lack of bad faith on part of debtor or his attorney.