Lewis v. MASSACHUSETTS HIGHER ED. ASSIST. CORPORA

CourtUnited States Bankruptcy Court, S.D. Mississippi
DecidedJanuary 29, 2020
Docket17-06060
StatusUnknown

This text of Lewis v. MASSACHUSETTS HIGHER ED. ASSIST. CORPORA (Lewis v. MASSACHUSETTS HIGHER ED. ASSIST. CORPORA) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, S.D. Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lewis v. MASSACHUSETTS HIGHER ED. ASSIST. CORPORA, (Miss. 2020).

Opinion

fess Res SO ORDERED, Fs Ce ain Mh. Semen — oes (es. gf fe Judge Katharine M. Samson United States Bankruptcy Judge □□□ OO Date Signed: January 29, 2020 The Order of the Court is set forth below. The docket reflects the date entered.

IN THE UNITED STATES BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF MISSISSIPPI IN RE: VELMONT E. LEWIS JR. CASE NO. 17-51357-KMS ALTEMICE M. LEWIS DEBTORS CHAPTER 7 ALTAMIC M. LEWIS’ PLAINTIFF V. ADV. PROC. NO. 17-06060-KMS MASSACHUSETTS HIGHER EDUCATION DEFENDANTS ASSISTANCE CORPORATION d/b/a AMERICAN STUDENT ASSISTANCE, EDUCATIONAL CREDIT MANAGEMENT CORPORATION and THE UNITED STATES DEPARTMENT OF EDUCATION OPINION HOLDING STUDENT LOAN DEBT NONDISCHARGEABLE This matter came on for trial on the Complaint to Determine Dischargeability of Student Loan Pursuant to 11 U.S.C. § 523(a)(8), ECF No. 1,” by chapter 7 Debtor Altemice M. Lewis. The

! The bankruptcy petition, the adversary complaint, and the pretrial order each show a different spelling of Lewis’s first name. The petition, which has not been amended, shows her name as “Altemice.” See Jn re Lewis, Ch. 7 Case No. 17-51357-KMS, ECF No. 1 at 1 (Bankr. S.D. Miss. filed July 14, 2017). The complaint shows her name as “Altamice,” with an “a” instead of an “e” in the second syllable. See Lewis v. Mass. Higher Educ. Assistance Corp. (in re Lewis), Ch. 7 Case No. 17-51357-KMS, Adv. No. 17-06060-KMS, ECF No. | at 1 (Bankr. S.D. Miss. filed Noy. 27, 2017). The pretrial order states that the correct spelling is “Altamic.” Pretrial Order J (3), Adv. No. 17- 06060-KMS, ECF No. 34 at 2. The pretrial order supersedes and amends the pleadings. /d. at 4-5. This Opinion therefore adopts “Altamic” for its adversary caption. 2“ECF No. __” references a docket entry in this adversary proceeding.

United States Department of Education having been dismissed and American Student Assistance having transferred its interest in the promissory note to Educational Credit Management Corporation (“ECMC”), ECMC is the proper defendant, Pretrial Order J (3), ECF No. 34 at 2. This proceeding is within the bankruptcy court’s core jurisdiction under 28 U.S.C. § 157(b)(2)(D). Lewis owes approximately $288,000 on a student loan consolidation loan (“Loan”) that she argues should be discharged because repaying it would impose an undue hardship on herself and her children. Alternatively, Lewis seeks discharge of some portion of the Loan. In the Fifth Circuit, a student loan may be discharged only if the debtor satisfies all three prongs of the test set out in Brunner v. New York State Higher Education Services Corp., 831 F.2d 395 (2d Cir. 1987). Because Lewis does not satisfy the Brunner test, neither the Loan nor any part of it may be discharged. FINDINGS OF FACT Lewis, who is forty years old, makes approximately $92,000 a year as a neurophysiologist. Trial Tr. 33:10, 30:3-5, ECF No. 50; Sch. I, Pl.’s Ex. 3, ECF No. 43 at 5.4 A neurophysiologist monitors a patient’s brain and spinal cord during surgery: “Anything involving a nerve basically that the surgery could cause insult to, or the spinal cord, I monitor that and I give the surgeon feedback during the surgery.” Tr. 15:11-14. Lewis has been doing this kind of work for eight years and has worked for nine different companies. /d. at 15:6-7. She has developed the skills to handle “advanced cases,” which with her years of experience and her relationships with hospital administrators keep her relevant and

> The parties stipulated that the underlying loans are federally insured student loans within the purview of 11 U.S.C. § 523(a)(8). Trial Tr, 3:22-25, ECF No. 50. Plaintiff's Exhibit 3 and Defendant’s Exhibit 10 both purport to be Schedules I/J updated for trial. Both exhibits were stipulated to and admitted into evidence. Tr. 4:25-5:9. But they differ materially. Counsel for both parties questioned Lewis only on Plaintiffs exhibit. Accordingly, the Court considers only Plaintiff's exhibit.

valuable to her employer. Jd. at 15:23-25; 17:2-21; 41:12-13. This job pays more than any other she knows of or has applied for: “I’ve not found any job that I can do that’s going to pay me what I make now, or even close.” Jd. at 48:10-11. But it requires constant travel: “I live in the state of Mississippi, but I don’t work in Mississippi. I travel to Connecticut, New York, Florida, Louisiana, Tennessee, Ohio, Chicago. Wherever they basically need me to cover a case.” Jd. at 15:19-22. And it requires a reliable car. Jd. at 26:25-27:1. Lewis did not set out to be a neurophysiologist. She wanted to be a chiropractor. So she borrowed money and earned a bachelor’s degree from McNeese State University in Louisiana. Loan Hist., Def.’s Ex. 2, ECF No. 44-1 at 5; Tr. 11:6-7. She borrowed more money and in 2006 graduated from Texas Chiropractic College with a Doctor of Chiropractic degree. ECF No. 44-1 at 5; Tr. 11:7-13. She started her first chiropractic job, a paid post-externship. Tr. 11:13-18. Then her life derailed. In 2007, Lewis gave birth to a baby boy, who died. /d. at 11:24-25. Three days later, she was diagnosed with a pulmonary embolism and then an “unnamed blood disorder,” for which she will take blood thinners the rest of her life. Jd. at 11:25-12:9. Lewis “of course” lost her job, and her financial disintegration began. Jd. at 12:4-5, Lewis has not worked in chiropractic since. She got a full-time job with the state of Texas, but lost it after her second child, another boy, was born prematurely and spent eight weeks in the neonatal intensive care unit. /d. at 12:16-13:1. After that, she took a part-time position teaching anatomy and physiology. Jd. at 13:3-4. She got pregnant again, delivered another boy prematurely, and herself developed new medical problems, including “really bad” asthma. Jd. at 13:8-12. From 2006 to 2012, Lewis’s income averaged $30,000 to $35,000 a year. Id. at 13:20-24.

In 2012, Lewis began to rebound. Married by this time, she seized an opportunity to train for her current career, moving her husband and two sons to Louisiana to stay with her mother, and herself to Buffalo, New York, for the training program. /d. at 13:25-14:9, But Lewis’s problems were not over. Shortly after arriving in Buffalo, Lewis was diagnosed with Type I diabetes. Jd. at 14:10-13. Then, after her training, she moved her husband and sons to Buffalo only to have the company lose that contract, resulting in a six-month stint of unemployment during which she moved back home to Louisiana. Jd. at 14:18-15:4. Although her income has been “fairly consistent” in the past year, id. at 16:23-25, it was not consistent over the previous three years. In 2015, total income for Lewis and her husband was $103,724. Tax Return, Def.’s Ex. 6, ECF No. 44-3 at 13. In 2016, it was $92,868. Tax Return, Def.’s Ex. 7, ECF No. 44-3 at 19. But in 2017, the year she and her husband filed their underlying chapter 7 case, their income plummeted to $42,546, with Lewis as the only breadwinner. Tax Return, Def.’s Ex. 8, ECF No. 44-4 at 1, 2. Lewis is still the only breadwinner; her husband has been unemployed “for a long time.” Tr. 18:3-4, Lewis has relied on him for childcare, id. at 17:25-18:1; the couple’s 2017 tax return shows his occupation as “SAHD [Stay At Home Dad],” Def.’s Ex. 8, ECF No. 44-4 at 2. Recently, Lewis and her husband separated—a fact that counsel for ECMC did not know until the morning of trial. Tr. 18:1-2, 50:1. The separation raises evidentiary issues.

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Bluebook (online)
Lewis v. MASSACHUSETTS HIGHER ED. ASSIST. CORPORA, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lewis-v-massachusetts-higher-ed-assist-corpora-mssb-2020.