Jordan v. American Education Services et al

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-1-	MEMORANDUM DECISION
UNITED STATES BANKRUPTCY COURT
FOR THE NORTHERN DISTRICT OF CALIFORNIA
In re
SORHNA LI JORDAN,
Debtor.
SORHNA LI JORDAN,
Plaintiff,
vs.
AMERICAN EDUCATION SERVICES,
KEYCORP TRUST, STUDENT LOAN
CORPORATION, EDUCATIONAL CREDIT
MANAGEMENT CORPORATION, and KHESLC,
Defendants.
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Case No. 06-31206 TEC
Chapter 7
Adv. Proc. No. 07-3059 TC
MEMORANDUM DECISION
This action came to trial on July 23, 2008. 	Plaintiff Sorhna
Li Jordan (Jordan) appeared in pro per. 	Miriam E. Hiser appeared
for Defendant Educational Credit Management Corporation. 	Randall
P. Mroczynski appeared for Defendant Key Bank N.A. 	Steven A.
Booska appeared for Defendant Kentucky Higher Education Student
Loan Corporation. 	Upon due consideration, the court expands as set
forth below the findings of fact and conclusions of law stated
Signed and Filed: September 23, 2008
________________________________________
THOMAS E. CARLSON
U.S. Bankruptcy Judge
________________________________________
Entered on Docket
September 24, 2008
GLORIA L. FRANKLIN, CLERK
U.S BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
Case: 07-03059 Doc# 43 Filed: 09/23/08 Entered: 09/24/08 14:25:55 Page 1 of 4

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-2-	MEMORANDUM DECISION
orally on the record at the conclusion of the trial.
The evidence shows that Ms. Jordan has made a good faith
effort to repay her student loans. 	She made significant payments
on each of the loans at issue when illness did not prevent her from
working.
The evidence shows that Ms. Jordan is suffering from post
traumatic stress disorder and is currently unable to work. 	She
does not have any significant assets, and being unable to work, is
unable to maintain a minimal standard of living if required to
repay her student loans.
The evidence shows that Ms. Jordan’s debilitating condition is
likely to persist for a period of time that is significant, but
that cannot be forecast with precision. 	The evidence admits of a
possibility that Ms. Jordan’s condition may at some time improve to
the extent that she will be able to resume working. 	As Ms. Jordan
is only 33 years old, has made progress in overcoming her
disability through therapy, has been admitted to the California
Bar, and exhibited considerable skill in defending herself at
trial, it is possible that Ms. Jordan may become able in the future
to pay back all or part of her student loans. 	The court determines
that this case presents an appropriate occasion to discharge part
of Ms. Jordan’s student loan obligations. 	In re Saxman, 325 F.3d
1168, 1173-75 (9th Cir. 2003). 	The court also determines from
Ms. Jordan’s prior employment and prior efforts to repay the loans
that Ms. Jordan will resume employment of a type suitable to her
medical condition as soon as she is able to do so. 	The portion of
the loans that she should be required to repay should depend upon
her actual future income, to eliminate the harmful stress of having
Case: 07-03059 Doc# 43 Filed: 09/23/08 Entered: 09/24/08 14:25:55 Page 2 of 4

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-3-	MEMORANDUM DECISION
to repay the loans while she is unable to work. 	The judgment filed
herewith is designed to encourage Ms. Jordan to work, and to
require her to repay that portion of the loan appropriate for her
income and ability to repay. 	The court determines that repayment
of more than the amount set forth in the attached judgment would
constitute an undue hardship on Ms. Jordan.
**END OF MEMORANDUM DECISION**
Case: 07-03059 Doc# 43 Filed: 09/23/08 Entered: 09/24/08 14:25:55 Page 3 of 4

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Court Service List
Sorhna Li Jordan
1910 Pine Street
Daly City, CA 94014
Kimberly A. Fanady, Esq.
Law Offices of Kimberly A. Fanady
180 Montgomery Street, Suite 940
San Francisco, CA 94104
Student Loan Corporation
PO BOX 6615
The Lakes, NV 88901-6615
Miriam E. Hiser, Esq.
Law Offices of Miriam E. Hiser
550 Montgomery Street, Suite 650
San Francisco, CA 94111
Steven A. Booska, Esq.
Law Offices of Steven A. Booska
250 Montgomery Street, Suite 720
San Francisco, CA 94104
Randall P. Mroczynski, Esq.
Byron J. Bahr, Esq.
Cooksey, Toolen, Gage, Duffy & Woog
535 Anton Boulevard, Tenth Floor
Costa Mesa, CA 92626-1977
Case: 07-03059 Doc# 43 Filed: 09/23/08 Entered: 09/24/08 14:25:55 Page 4 of 4