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The Indiana Court of Appeals ruled on an issue of first impression inGreen Tree Servicing, LLC v. Brough, 930 N.E.2d 1238 (Ind. Ct. App. 2010) that arbitration provisions in consumer loan agreements survive discharge in the borrower’s bankruptcy proceeding.

On July 26, 2010, the Indiana Court of Appeals, in the published decision of Green Tree Servicing, LLC., v. Brian D. Brough, No. 88A01-0911-CV-550, addressed the issue raised by Appellant Green Tree as to whether the trial court erred by vacating its prior Order directing the parties to arbitrate their dispute, which involved a prior bankruptcy filing and a claim under the Fair Credit Reporting Act.

A recent defeat by a student-loan creditor could turn out to be a victory for the industry overall.

On March 23, 2010, the United States Supreme Court decided an important case concerning a student-loan creditor’s motion to void a bankruptcy court’s judgment.1 The creditor brought this motion after initiating collection efforts and in response to the debtor’s request to cease and desist those efforts.