Business Law Today, Comprehensive 10th Edition by Roger LeRoy Miller

Exercise 6

Discharge. Like many students, Barbara Hann financed her college education partially through loans. Those loans included three federally insured Stafford Loans of $7,500 each ($22,500 in total). Hann believed that she repaid the loans, but when she later filed a Chapter 13 petition, Educational Credit Management Corp. (ECMC) filed an unsecured proof of claim based on the loans. Hann objected. At a hearing at which ECMC failed to appear, Hann submitted correspondence from the lender that indicated the loans had been paid. The court entered an order sustaining Hann's objection. Can ECMC now resume its effort to collect on Hann's loans Explain.