Parvizi v. U.S. Dep't of Educ. (In re Parvizi)
| Decision Date | 13 May 2021 |
| Docket Number | Case No. 18-30578-EDK,Adversary Proceeding No. 19-3003 |
| Parties | In re: TAMARA SARA PARVIZI, Debtor TAMARA SARA PARVIZI, Plaintiff v. UNITED STATES DEPARTMENT OF EDUCATION, GREAT LAKES BORROWER SERVICES, Defendants |
| Court | U.S. Bankruptcy Court — District of Massachusetts |
AMENDED MEMORANDUM OF DECISION
Before the Court, after trial, is a pro se complaint filed by Tamara S. Parvizi, the debtor in the underlying Chapter 7 bankruptcy case (the "Debtor"), against the United States Department of Education (the "DOE") and Great Lakes Borrower Services ("Great Lakes"). Through this adversary proceeding, the Debtor seeks a declaration that various student loans held by the DOE should be discharged pursuant to § 523(a)(8) of the United States Bankruptcy Code,1 as exceptingthe loans from discharge would impose an undue hardship on the Debtor.2 The Court has jurisdiction over this matter pursuant to 28 U.S.C. §§ 157(a) and 1334(b) and D. Mass. Local Rule 201, and has the authority to enter a final judgment, 28 U.S.C. §§ 157(b)(1). See also 28 U.S.C. §157(b)(2)(I). The following constitute the Court's findings of fact and conclusions of law pursuant to Bankruptcy Rule 7052.
The factual findings contained in this Memorandum are based on trial testimony, the parties' joint pretrial stipulation, the admitted evidence, and the Court's own records.3 See LeBlanc v. Salem (In re Mailman Steam Carpet Cleaning Corp.), 196 F.3d 1, 8 (1st Cir. 1999).
As of the trial date, the Debtor was 51 years old, had no physical or mental conditions that impede her ability to work, and did not have (and never has had) any dependents. From 1997 through 2012, the Debtor received various student loans to fund her extensive education. As a result of that education, the Debtor has obtained multiple degrees and is fluent in at least four languages.4
In 1990, the Debtor obtained a bachelor's degree in philosophy and biochemistry from Clark University. Thereafter, she attended medical school at the University of Rochester School of Medicine from 1991 to 1995 but voluntarily left before receiving a degree. In 1997, the Debtor enrolled in a graduate program at University of Massachusetts Amherst and received a master's degree in public health in 1999.
Following the receipt of her master's degree, the Debtor worked as an assistant program director for a community health organization in Worcester, Massachusetts, earning an annual salary of between $30,000 and $40,000. She left that position after approximately six months to take a position as the director of a public health program affiliated with UMass Medical Center, where she earned approximately $50,000 per year. She left that director position after six months because, according to the Debtor, she was not committed to the organization's mission.
After leaving, the Debtor applied for some positions in public health within Massachusetts, but ultimately decided that she was more interested in teaching and was no longer interested in public health administrative positions, because the Debtor's "interest is in mind/body and in working with people that way." Def. Ex. K, Dec. 19, 2019 Dep. Tr. ("Dep. Tr.") 18:4-7. The Debtor acknowledged that, with regard to employment, "there are some compromises you have to make along the way," but she was unwilling to make those compromises. Dep. Tr. 18:8-11.
Until 2008, the Debtor assisted her father with his medical issues, pursued her artistic interests, performed odd jobs, and did some teaching. In 2007, the Debtor received $100,000 from her father and offered to compromise her extant $123,000 student loan balance for $45,000. The Debtor informed the DOE that "what it comes down to is this: whether I choose to live my life within or outside the United States." Def. Ex. A. The DOE rejected the offer because, based on the Debtor's financial statement, the DOE believed that the Debtor had an ability to pay the loan.The Debtor did not use any of the funds to pay down the student loan balance and has since spent the entire $100,000.
In 2008, the Debtor returned to medical school at St. George's University School of Medicine (financed by additional student loans) and graduated with a Doctor of Medicine in 2012. In June 2012, the Debtor began a four-year residency program in psychiatry at the University of Vermont ("UVM"), earning $50,000 per year. But the Debtor did not complete the residency program and left in January 2013.
At trial and during her deposition, the Debtor repeatedly blamed her current financial circumstances and inability to make payments on her student loans on the termination of her residency. The Debtor testified that, as a result of a conflict with her supervisor, the Debtor was put on a remediation plan and was then placed on leave pending an appeal. According to the Debtor, she "begged" the supervising doctor to let her finish out the year, and testified that "the fact that she would not let me finish the year really closed a lot of doors for me." Dep. Tr. 48:8-9, 19-20. The Debtor says that, as she was waiting for the resolution of her appeal, she decided not to attempt to find another residency match during that period because she was hoping for "a positive result . . . rather than risk not only a negative outcome but a prejudicial report." Trial Tr. 34:21-35:7, Sept. 29, 2020 ("Trial Tr."). The Debtor characterized the damage caused by not trying for a residency spot at that point as "a direct consequence of not having had an appeal on time." Trial Tr. 35:9-10. But elsewhere in her testimony, the Debtor admitted that she decided not to pursue the appeal and, instead, chose to resign. Her voluntary resignation from the residency program was noted in a letter of reference given to the Debtor from UVM in April 2013, which inter alia, acknowledged that the Debtor had successfully completed 6 clinical rotations. Pl. Ex. E.
Following her resignation, the Debtor maintains that she continued to search for residencies in psychiatry, family medicine, and pathology, that she has "knocked on every door," Trial Tr. 36:25, 51:25, and that she has "made every effort to recover my profession . . . and in the process obviously to be able to pay back these student loans." Trial Tr. 51:25-52:2. While her primary focus had been on obtaining a residency in psychiatry, the Debtor also shadowed pathology department attendees at Holyoke Health Center and the Emily Dickinson Hospital to prepare for potential interviews for family medicine or pathology residency programs. Despite her many attempts, the Debtor was never offered an interview for, nor admitted to, another residency program.
Since 2014, the Debtor has primarily obtained employment in the education field. She has taught as an adjunct professor at community colleges and has worked as a tutor, as a teacher for the North American Hockey Association, and as a per diem substitute high school teacher. For tax years 2016 through 2019, the Debtor's annual income was $21,588, $20,876, $41,336, and $28,668, respectively. The Debtor estimated that she earned $2,500 per month in early 2020. From April through August 2020, the Debtor collected $5,781 in unemployment compensation benefits and earned $3,500 teaching an online class, for a total monthly income of approximately $1,900. At the time of trial, the Debtor was working as an adjunct professor at the Massachusetts College of Pharmacy and Health Science earning an estimated $3,400 per month and had not yet secured employment for the spring of 2021.
When asked whether she has sought employment that would utilize her medical degree, the Debtor testified that she had applied for jobs as a research program coordinator in 2013 and 2014, but was dismissive of other potential opportunities in the medical field. She testified: Dep. Tr. 49:9-14, and emphasized her focus on obtaining employment in education: "I feel like I'm making a positive contribution . . . and I feel like I've suffered enough of a loss that I deserve a sense of dignity in terms of knowing that I'm doing something that's - that I consider worthwhile." Trial Tr. 46:21-47:7. The Debtor further testified that she has not sought additional part time work outside the medical and educational fields because she felt like she had Dep. Tr. 53:21-54:2.
As evidenced by her employment record since leaving her residency, the Debtor has not been focused on maximizing her income, but rather has decided to focus on obtaining employment in the educational field - Dep. 46:1-4. At trial, the Debtor reiterated that she "didn't go into medicine to make money," Trial Tr. 47:8-11, and testified that it didn't matter to her how much money she made, so long as she was able to "live more or less comfortably." Trial Tr. 47:21-24.
At the time of trial, the Debtor's expenses approximated $1,600 per month and included rent - $800; storage unit - $85; car insurance - $108; renter's insurance - $45; cell phone - $60; groceries - $300; and discretionary expenses - $200. Her car payment of $320 per month had recently been eliminated because the Debtor had paid off the loan. The Debtor stipulated that her discretionary income has fluctuated between $400 and $1,800 per month and testified that she has not saved any of it. To the contrary, the Debtor agreed that from June through August 2019 she spent $1,500 at clothing stores, household gift shops, and on Etsy.com and spent over $900 on coffee, eating out, and...
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