$378,629.62 Sanction by Bankruptcy Judge Against Student Loan Servicer

Bankruptcy Judge Martin Glenn of New York threw the book at and orders Great Lakes to pay DOE $354,629.62 and $24,000 to the borrower.

Palpably frustrated, Judge Glenn slammed Great Lakes for failing to respond to the initial lawsuit brought by the debtor to forgive the loans in 2016, ignore the debtor when he tried to explain that the loans were discharged, ignored the court’s subsequent orders for the servicer to appear before him to explain why they were ignoring the discharge.

When, finally, Great Lakes appears, the judge found that:

The excuses cited by Great Lakes are not clear, plain and unmistakable evidence that Great Lakes’ compliance with multiple court orders was impossible. Instead, the Court finds that Great Lakes has made no effort—much less a reasonable or diligent one—to comply with its obligations as a named party in this case.

“Here comes the Judge”

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