Discharge in Bankruptcy. Jon Goulet attended the University of Wisconsin in Eau Claire

and Regis University in Denver, Colorado, from which he earned a bachelor$$s degree in history in

$1972.$ Over the next ten years, he worked as a bartender and restaurant manager. In $1984,$ he

became a life insurance agent and his income ranged from $$20,000$ to $$30,000.$ In $1989,$ however,

his agent$$s license was revoked for insurance fraud, and he was arrested for cocaine possession.

From $1991$ to $1995,$ Goulet was again at the University of Wisconsin, working toward, but failing

to obtain, a master$$s degree in psychology. To pay for his studies, he took out student loans

totaling $$76,000.$ Goulet then returned to bartending and restaurant management and tried real

estate sales. His income for the year $2000$ was $$1,490,$ and his expenses, excluding a child$-$support

obligation, were $$5,904.$ When the student loans came due, Goulet filed a petition for bankruptcy.

$[$Goulet v$.$ Educational Credit Management Corp., $284$ F$\mathrm{.}3$d $773(7$th Cir. $2002)]$

a$)$ On what grounds might the loans be dischargeable?

b$)$ Should the court grant a discharge on these grounds? Why or why not?

c$)$ Will Goulet be able to discharge his child support obligation in bankruptcy?

d$)$ Bankruptcy courts attempt to balance the interests of both creditors and debtors in order to come

to a fair decision. Who is the debtor in this case? Who is the creditor? Would a discharge of student

loans be fair to both parties? Why or why not?