In re Warren, Bankruptcy No. 80-00595-BKC-SMW

Decision Date23 September 1980
Docket NumberBankruptcy No. 80-00595-BKC-SMW,Adv. No. 80-0172-BKC-SMW-A.
Citation6 BR 233
PartiesIn re Shelley Joy WARREN, Debtor. Shelley Joy WARREN, Plaintiff, v. UNIVERSITY OF ILLINOIS, Northwestern University, Student Loan Marketing Association and State of Florida, Defendants.
CourtU.S. Bankruptcy Court — Southern District of Florida

Richard L. Larin, North Miami Beach, Fla., for plaintiff.

Ira F. Gropper, Asst. U.S. Atty., Miami, Fla., for defendant.


SIDNEY M. WEAVER, Bankruptcy Judge.

THIS CAUSE came on to be heard upon the debtor's Complaint to Determine the Dischargeability of student loans under Section 523(a)(8) of the Bankruptcy Code. The Court, having heard the testimony of the witnesses and examined the evidence presented, having observed the candor and demeanor of the witnesses, having considered the arguments of counsel and being otherwise fully advised of the premises, does hereby make the following findings of fact and conclusions of law.

The plaintiff in this case filed her voluntary petition under Chapter 7 of the Bankruptcy Code in May of 1980. Her assets are scheduled as totaling $110.00, all of which are exempt under Florida law. The only creditors of this estate are the defendants in this adversary proceeding and their aggregate claims against the debtor total $7,475.00.

Prior to the date of trial, the plaintiff moved this Court to enter default judgments against all three creditors/defendants for their failure to file responsive pleadings. The Court finds, however, that the United States is the assignee of the Northwestern University loan. In accordance with Bankruptcy Rule 755(d), no default judgment will be entered against the United States. The Motion for default with respect to this loan is therefore denied. This Court will however enter default judgments against the State of Florida, and the University of Illinois for their failure to file a responsive pleading as required by Bankruptcy Rule 712.

In the case at issue, the debtor seeks relief based upon Section 523(a)(8)(B) of the Bankruptcy Code:

(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 government unit, or a non-profit institution of higher education, for an educational loan, unless —
(B) excepting such debt from discharge under this paragraph will impose an undue hardship on the debtor and the debtor\'s dependents; . . .

The debtor is an unmarried female in her early twenties. She has attended classes at the University of South Florida from September of 1974 to August of 1975, at the University of Illinois from August of 1975 to May of 1976, and at Northwestern University from September of 1976 thru June of 1979. Although she has not yet received her degree in music, she has been professionally employed as a flutist.

The debtor's testimony revealed that she has not been gainfully employed since April of 1980. Her work experiences since college have been part-time, and she has no current prospects of...

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