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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowThe successor interest in a student loan after its originator filed bankruptcy is entitled to judgment in its favor to collect a delinquent student loan, the Indiana Court of Appeals ruled Thursday.
The decision in Douglas L. Krasnoff v. The Education Resources Institute, 49A04-1501-CC-3, marks the second time this matter has been appealed from a trial court decision. In the first case, TERI appealed a judgment in favor of Krasnoff and won a reversal. In this case, the trial court awarded TERI a judgment of $13,952.66, reflecting the balance on the loan plus fees and costs.
TERI had gone through bankruptcy during the pendency of the suit, and Krasnoff’s note was transferred to a successor entity, TERI Plan Trust. Krasnoff argued among other things that TERI had no standing to pursue its claim.
“In light of the Trust’s ratification of TERI’s status as the named plaintiff, and in the absence of any argument by Krasnoff challenging the trial court’s conclusion as to the question of his breach of either the Note or the Agreement, we find no error and accordingly affirm the trial court,” Judge L. Mark Bailey wrote for the panel.
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