In re Stone — 9th Cir. BAP (Jul 16, 2026)
The Ninth Circuit Bankruptcy Appellate Panel considers Barbara Stone's appeal over student loans in her 1994 Chapter 7 case. The bankruptcy court found the loans met the seven-year discharge test then in force, but ruled Stone needed a separate lawsuit to enforce the discharge injunction. It also declined to hold the Department of Education in contempt, finding an objectively reasonable basis to doubt that collection was barred. Stone will challenge both rulings; the Department will ask the panel to affirm. The panel later held that the 1994 order discharged the loans without a separate lawsuit, but affirmed the denial of contempt.
In re Stone (No. 26-1009) — United States Bankruptcy Appellate Panel of the Ninth Circuit, argued July 16, 2026.
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