Why must the system require a trial to discharge student loans by a debtor in hopeless circumstances?
The debtor, not the trustee, can profit from a secured creditor’s mistakes.
Although not required to file claims, secured creditors must comply with the deadline if they do.
Bankruptcy court can make a final order disallowing an unfiled claim under state law.
Showing intentional violation of court order isn’t enough for nondischargeability.
Creditor’s unrepentant attitude escalates punitive damages from $33,700 to $250,000.
Judge bends over backward so debtor can keep an $80,000 windfall.