Volume 5 Winter 2011 Number 2 - Charleston Law Review

2011] Errors in Judgmentof Bankruptcy Procedure (Rules) provide the procedure for adebtor to initiate an adversary proceeding to determine thedischargeability of a debt. 8 In Espinosa, this proceeding was notconducted. 9 Instead, in this Chapter 13 case, the debtor providedfor the principal of the debt to be paid through the plan, but notthe interest. 10 The plan was confirmed by the bankruptcy court,and upon completion of the payments under the plan, theinterest was discharged. 11 No finding of “undue hardship” wasmade by the bankruptcy court. 12 The court opined that becausethe creditor had notice of the bankruptcy proceeding, the factId.debtor’s dependents, for—(A)(i) an educational benefit overpayment or loan made, insured,or guaranteed by a governmental unit, or made under any programfunded in whole or in part by a governmental unit or nonprofitinstitution; or(ii) an obligation to repay funds received as an educationalbenefit, scholarship, or stipend . . .8. FED.R.BANKR.P. 7001 (2006).An adversary proceeding is governed by the rules of this Part VII.The following are adversary proceedings: (1) a proceeding to recovermoney or property, other than a proceeding to compel the debtor todeliver property to the trustee, or a proceeding under § 554(b) or § 725of the Code, Rule 2017, or Rule 6002; (2) a proceeding to determine thevalidity, priority, or extent of a lien or other interest in property, otherthan a proceeding under Rule 4003(d); (3) a proceeding to obtainapproval under § 363(h) for the sale of both the interest of the estateand of a co-owner in property; (4) a proceeding to object to or revoke adischarge; (5) a proceeding to revoke an order of confirmation of achapter 11, chapter 12, or chapter 13 plan; (6) a proceeding todetermine the dischargeability of a debt; (7) a proceeding to obtain aninjunction or other equitable relief, except when a chapter 9, chapter11, chapter 12, or chapter 13 plan provides for the relief; (8) aproceeding to subordinate any allowed claim or interest, except whena chapter 9, chapter 11, chapter 12, or chapter 13 plan provides forsubordination; (9) a proceeding to obtain a declaratory judgmentrelating to any of the foregoing; or (10) a proceeding to determine aclaim or cause of action removed under 28 U.S.C. § 1452.Id. Certain of the other matters for which an adversary proceeding is requiredare discussed infra Part II.A.9. Espinosa, 559 U.S. at ___, 130 S. Ct. at 1374.10. Id.11. Id.12. Id.197