Goodman et al v. US Department of Education et al

UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF OHIO
IN RE:
JEFFREY VINCENT GOODMAN and
DEBORAH LYNN GOODMAN,
Debtors.
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JEFFREY VINCENT GOODMAN and
DEBORAH LYNN GOODMAN,
Plaintiffs,
v.
US DEPARTMENT OF EDUCATION,
et al.,
Defendants.
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CASE NUMBER 10-40290
ADVERSARY NUMBER 10-04098
HONORABLE KAY WOODS
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ORDER HOLDING STUDENT LOAN DEBTS ARE NOT DISCHARGED
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This 	cause 	is 	before 	the 	Court 	on 	Complaint 	to 	Determine
Dischargeability 	of 	Debts 	filed 	by 	Debtors/Plaintiffs 	Jeffrey
Vincent Goodman and Deborah Lynn Goodman on May 3, 2010. 	On June 1,
IT IS SO ORDERED.
Dated: May 18, 2011
04:00:59 PM
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2010, Defendant Educational Credit Management Corporation (“ECMC”)
filed Answer of Defendant Intervenor Educational Credit Management
Corporation (Doc. # 9). 	On June 8, 2010, United States of America,
on 	behalf 	of 	its 	agency, 	the 	U.S. 	Department 	of 	Education
(“the DOE”), filed Answer of the United States of America on behalf
of the U.S. Department of Education.
At the April 11, 2011 trial, (i) Roger R. Bauer, Esq. appeared
on 	behalf 	of 	the 	Debtors; 	(ii) 	Frederick 	S. 	Coombs 	III, 	Esq.
appeared 	on 	behalf 	of 	ECMC; 	and 	(iii) 	Steven 	J. 	Paffilas, 	Esq.
appeared on behalf of the DOE. 	The Court heard arguments of counsel
and testimony from Jeffrey Vincent Goodman and Deborah Lynn Goodman.
For 	the 	reasons 	set 	forth 	in 	this 	Court’s 	Memorandum 	Opinion
Regarding 	Complaint 	to 	Determine 	Dischargeability 	of 	Student 	Loan
Debts entered on this date, the Court finds:
(1) 	The Debtors cannot maintain, based on current income
and 	expenses, 	a 	minimal 	standard 	of 	living 	for
themselves 	and 	their 	dependents 	if 	forced 	to 	repay
the Student Loans;
(2) 	The Debtors did not establish, by a preponderance of
the 	evidence, 	additional 	circumstances 	indicating
that 	they 	will 	be 	unable 	to 	maintain 	a 	minimal
standard of living for a significant portion of the
repayment 	period 	if 	forced 	to 	repay 	the 	Student
Loans; and
(3) 	The Debtors did not establish, by a preponderance of
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the 	evidence, 	that 	the 	Debtors 	made 	good 	faith
efforts to repay the Student Loans.
As 	a 	consequence, 	the 	Court 	hereby 	finds 	and 	holds 	that 	the
Debtors’ Student Loans are not dischargeable pursuant to 11 U.S.C.
§ 523(a)(8); provided, however, this determination is specifically
conditioned 	on 	the 	offers 	of 	ECMC 	and 	the 	DOE 	regarding
enrollment/participation 	in 	the 	specified 	repayment 	programs
(including 	the 	DOE’s 	offer 	to 	discharge 	any 	unpaid 	balance 	of 	Mr.
Goodman’s 	debt 	at 	the 	end 	of 	the 	repayment 	period) 	remaining 	open
and available for the Debtors to accept.
IT IS SO ORDERED.
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