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Halliwell v. USDOE - SDWV Denies Student Loan Discharge

The U.S. Bankruptcy Court for the Southern District of West Virginia granted summary judgment in favor of the United States Department of Education in an adversary proceeding where Debtor Amber Dawn Halliwell sought to discharge $107,228.19 in student loan debt under Chapter 7 bankruptcy. The Court found that Halliwell failed to demonstrate that repayment of her student loans would constitute an undue hardship under 11 U.S.C. § 523(a)(8), applying the Fourth Circuit's Frushour test requiring proof that she cannot maintain a minimal standard of living if forced to repay and that her circumstances are unlikely to improve.

Johns v. Peoples Security Bank and Trust Company - Preferential Transfer Claim Dismissed

The United States Bankruptcy Court for the Southern District of West Virginia granted Peoples Security Bank's Motion for Summary Judgment and dismissed the Trustee's adversary proceeding, in which the Trustee sought to avoid the Bank's lien on a 2024 Volvo Sleeper Tractor as a preferential transfer under 11 U.S.C. § 547. The court found that the parties' secured loan agreement was executed on May 15, 2024, while the Debtors filed their Chapter 7 petition on August 29, 2024 — more than 90 days later — placing the transfer outside the statutory preference window. The court held that the Trustee bears the burden of proving all five elements of § 547(b) and could not satisfy the timing requirement, making the Bank entitled to judgment as a matter of law.

DOL Discovery Motion Granted in Part in Blackjewel Bankruptcy

The United States Bankruptcy Court for the Southern District of West Virginia issued an opinion on August 15, 2025 granting in part and denying in part the Department of Labor's Motion to Compel Discovery. The DOL sought discovery related to the Prior Health Plan in the Blackjewel LLC Chapter 11 bankruptcy case. The court ruled on the discovery dispute after reviewing the DOL's Motion, the Liquidation Trustee's Response in Opposition, and the DOL's Reply. This ruling resolves a procedural discovery dispute between the DOL and the Blackjewel Liquidation Trust regarding the former debtors' health plan.