In re Lawson, Bankruptcy No. 1-80-02416

Decision Date22 April 1981
Docket NumberAdv. No. 1-80-0749.,Bankruptcy No. 1-80-02416
Citation10 BR 477
PartiesIn re Beverly Jean LAWSON, Debtor. TREVECCA NAZARENE COLLEGE, Plaintiff, v. Beverly Jean LAWSON, Defendant.
CourtU.S. Bankruptcy Court — Eastern District of Tennessee

Jeffrey D. Boehm, Chattanooga, Tenn., for plaintiff.

David E. Nelson, Jr., Chattanooga, Tenn., for defendant.


RALPH H. KELLEY, Bankruptcy Judge.

This cause came on to be heard on April 21, 1981 on plaintiff's complaint to determine dischargeability of defendant's debt to it. The complaint alleges that the action arises under 11 U.S.C. § 523(a)(8) which reads as follows:

Exceptions to discharge.
(a) A discharge under section 727, 1141, or 1328(b) of this title does not discharge an individual debtor from any debt—
. . . .
(8) to a governmental unit, or a non-profit institution of higher education, for an educational loan, unless—
(A) such loan first became due before five years before the date of the filing of the petition; or
(B) excepting such debt from discharge under this paragraph will impose an undue hardship on the debtor and the debtor\'s dependents ....

The complaint alleges that "defendant's obligation arises from a national direct student loan made by plaintiff to defendant as evidenced by a promissory note dated November 3, 1976 . . . The loan to defendant was for an educational loan."

The complaint further alleges, "The aforesaid debt is not dischargeable in the present bankruptcy proceedings by virtue of 11 U.S.C. Section 523(a)(8), defendant's petition in bankruptcy having been filed on or after November 7, 1980, and within five years of the beginning of the repayment period of said debt."

The defendant filed an answer admitting the allegations of the complaint except she alleges the indebtedness ". . . is dischargeable under the provisions of 11 U.S.C. 522(a)(8)(B). She would show that to allow this debt to be non-dischargeable would impose an undue hardship on the debtor. She would show that she is in fact still a student and that she has no income or earnings and that to deny a discharge to this debt would be an undue hardship upon her and her family."

From the record in this cause it appears that two claims were filed in connection with educational loans.

                  Trevecca Nazarene College   $1,206.32
                  Georgia Higher Education    $1,871.91
                    Assistance Corporation

From the proof the court finds that debtor dropped out of college because she was unable to pay all costs incident to her education. For a while she tried to work as a waitress. She was not married, became pregnant, and returned home to her parents.

The date of the trial was the second birthday of her child. She gets no child support. She has lived with her parents for the past two years.

With the help of CETA she has been able to graduate from Walker County Technical School with a Licensed Practical Nurse Diploma. It took 13 months of study to obtain the diploma.

She has taken the necessary test to be licensed by the state. She does not have the results of the test. In order to live and go to school, it has been necessary for debtor to receive assistance from the Welfare Department. She also has received assistance from her parents.

Upon becoming licensed by the state, she hopes to work in a local hospital with an hourly income of $4.57. If she works a full week, or 40 hours, she will have a gross income of $728.00 per month. She has attempted to...

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