In re Thompson
| Decision Date | 22 July 2005 |
| Docket Number | Bankruptcy No. 03-75819-SCS.,Adversary No. 04-7148-SCS. |
| Citation | 329 B.R. 145 |
| Court | U.S. Bankruptcy Court — Eastern District of Virginia |
| Parties | In re Lola P. THOMPSON, Debtor. Lola P. Thompson, Plaintiff, v. New Mexico Student Loan Guarantee Corporation, Defendant. |
Arthur G. McGowan, Virginia Beach, VA, for Debtor.
STEPHEN C. ST. JOHN, Bankruptcy Judge.
This matter came on for trial on April 5, 2005, on the Pro Se Plaintiff's Complaint to Determine Dischargeability of Debt of certain student loans ("Complaint"), and upon the hearing on the Court's reopening of the evidence conducted on June 15, 2005. At the conclusion of the hearing on June 15, 2005, the Court took the matter under advisement. The Court has jurisdiction over these core proceedings pursuant to 28 U.S.C. §§ 157(b)(2)(I) and 1334(b). Venue is proper pursuant to 28 U.S.C. § 1409(a). Upon consideration of the evidence and arguments presented at the trial and of the pleadings submitted by each party, the Court makes the following findings of fact and conclusions of law.
The Debtor and Pro Se Plaintiff in this matter, Lola P. Thompson ("Thompson") filed an individual Chapter 7 voluntary petition on August 12, 2003. The Court's Docket reflects that on October 28, 2003, the Chapter 7 Trustee assigned to Thompson's bankruptcy case filed a "Report of No Distribution" and Thompson subsequently received a discharge of her dischargeable debts on December 3, 2003.
On August 15, 2004, Thompson filed a Motion to Reopen Bankruptcy Case, which was granted by this Court. On September 28, 2004, Thompson filed an adversary proceeding against Premiere Credit of North America, LLC ("Premiere"), praying that her student loans be discharged. Thompson alleged in it that in order to finance her education at New Mexico Institute of Mining & Technology ("New Mexico Tech"), she secured a student loan from the New Mexico Educational Assistance Foundation ("NMEAF"). Thompson asserted that repaying these student loans would constitute an undue hardship. See Pl. Compl., p. 1. Accordingly, Thompson requests of this Court a discharge due to the undue hardship associated with repaying her student loans.
On November 5, 2004, an Answer to Thompson's Complaint was filed by New Mexico Student Loan Guarantee Corporation ("NMSLGC"). In its Answer, NMSLGC alleged that the named Defendant in this matter, Premiere is a collection agency under contract with NMSLGC, and that although NMSLGC was not named by or served in Thompson's Complaint, that NMSLGC was the real party-in-interest. See Def. Answer, p. 1.
The Pretrial Conference in this proceeding was set for December 2, 2004, at which time, both Thompson and counsel for NMSLGC appeared.1 NMSLGC was subsequently substituted as the real party-in-interest in place of Premiere on December 15, 2004.2 At the Pretrial Conference, various standard discovery deadlines were set and the final trial date to determine the dischargeability of Thompson's student loan debts was set for April 5, 2005.3
The trial in this matter was held on April 5, 2005. Thompson was the sole witness called by either party.4 At the conclusion of the trial, an additional issue was brought to the Court's attention by NMSLGC. Counsel for NMSLGC represented to the Court that the New Mexico state court judgment against Thompson was no longer in existence, having been both time-barred under state law and having been set aside by the New Mexico state court of record. After an extensive discourse with the Court, counsel for NMSLGC conceded to the Court that absent the provisions of the Higher Education Act of 1965 ("HEA"), NMSLGC would not have a basis to enforce its right of collection against Thompson. The Court provided NMSLGC thirty days to provide a written memorandum in support of its position as to this limited issue only. The Court also afforded Thompson a period of time to respond. Upon receipt of the additional briefed materials, the Court determined, sua sponte, that there was an insufficient evidentiary record upon which to base any findings as to this additional issue and ordered that the evidence be reopened solely as to this new issue.
By its Order dated May 12, 2005, this Court ordered each party to submit all evidentiary materials pertaining to the HEA issue.5 An evidentiary hearing on the HEA issue was held on June 15, 2005.6 At the conclusion of this hearing, the Court closed the evidence and took the matter under advisement.
Thompson has had an unfortunate and traumatic life and suffers from longstanding, serious personal and professional instability. Due to the nature of the issues presented in this matter, it is regrettably necessary for the Court to go into some detail of the events of Thompson's past. The facts of this case are largely undisputed.
Thompson is a fifty-five year old woman who has obtained four secondary degrees since 1972. Thompson obtained a Bachelor of Science Degree in Biology from New Mexico Tech in Socorro, New Mexico, in 1972. Pl.Ex. 1. Thompson then went on to receive a Master's Degree in Guidance Counseling from Iowa State University in Ames, Iowa, in 1975. Id. In 1982, Thompson received a one-year computer certification from Globe College of Business in St. Paul, Minnesota. Id. Finally, Thompson returned to Socorro to obtain another Bachelor of Science Degree from New Mexico Tech in Computer Science. Id. In order to realize the fourth and final of these advanced degrees, Thompson obtained financing in the form of student loans from NMEAF.7 Thompson attended New Mexico Tech from August 1983 until her graduation in May 1987, and borrowed approximately $16,539.00 in student loans from NMEAF over this four year period to finance this portion of her education.8 Thompson's student loan from NMEAF was secured by nine separate promissory notes, dated from August 22, 1983 to October 2, 1986. Def. April 5, 2005 Ex. A, p. 3-20.
Thompson filed for Chapter 7 bankruptcy in the United States Bankruptcy Court for the Eastern District of Virginia on August 12, 2003. In Thompson's Voluntary Petition, she claimed only $3,500.00 in assets, of which she claimed $650.00 in exempted personal property.9 Liabilities, however, were a far different story. Through her Chapter 7 bankruptcy filing, Thompson was able to successfully discharge $33,762.00 in secured debt and $53,695.23 in unsecured nonpriority claims.10 It should be further noted that included in this $53,695.23 in discharged unsecured nonpriority debt, was at least $26,010.00 in discharged credit card debt and approximately $7,989.00 in discharged medical bills.11 Schedule J of Thompson's Chapter 7 petition lists her monthly expenditures to be $2,390.00. Pl. Sch. J. Thompson's expenses were listed on her Schedule J as follows:
C.
Thompson grew up in an unusual household in New Orleans, Louisiana. Thompson was the oldest of eight children and apparently played a significant role in raising her siblings. Tr. at 15-16, 66. Thompson testified that growing up, she prepared their meals, got them ready for school, put them to bed at night, and otherwise served in a typically parental capacity for the other children in her family. Id. Thompson further stated that there were days when she actually had to stay home from school in order to take care of her younger brothers and sisters. Id. During her childhood, Thompson suffered a number of unusual experiences which may have adversely influenced her life as an adult.
Thompson left her home in New Orleans to attend college at New Mexico Tech in Socorro, New Mexico, in 1967. Tr. at 14-15. While Thompson was in college, she testified that she sent money home to her family, at her mother's behest. Id. The record is unclear as to where this money came from or as to how Thompson otherwise funded her education and living expenses while obtaining this, the first of her two bachelor's degrees from New Mexico Tech.
Thompson received her Bachelor of Science in Biology from New Mexico Tech in 1972, and, upon graduation, returned to New Orleans. Tr. at 15; Pl.Ex. 1. Thompson remained in New Orleans for approximately fifteen months, unemployed for the first month, and then holding three separate jobs from June 1972 to September 1973.12 Tr. at 15; Pl.Ex. 1.
Thompson then left New Orleans and moved to Ohio in September 1973 to take a job as a Resident Counselor at Wilberforce University in Wilberforce, Ohio.13 Tr. at 15; Pl.Ex. 1. Unfortunately, however, when a tornado hit Ohio, Thompson was forced to go back home to New Orleans. Id.
Thompson testified that she was supposed to be home in New Orleans for approximately one month, but stayed for much less time because of a physical confrontation with her mother. Tr. at 15-16. Thompson stated that she attempted to leave New Orleans the next day after the confrontation, but was unable to do so because her mother had...
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...because the Debtor appears pro se. Pro se complaints are to be construed liberally by the courts. Thompson v. N.M. Student Loan Guar. Corp. ( In re Thompson ), 329 B.R. 145 (Bankr.E.D.Va.2005) (citing Haines v. Kerner, 404 U.S. 519, 520, 92 S.Ct. 594, 30 L.Ed.2d 652 (1972)). The Debtor will......
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