In re Courtney

Opinion

 [*1005] FINDINGS OF FACT, CONCLUSIONS OF LAW AND JUDGMENT

KENT LINDQUIST, CHIEF JUDGE, U.S. BANKRUPTCY JUDGE

Statement of Proceedings

This adversary proceeding was instituted by the Debtor by complaint filed June 4, 1986 praying that the scheduled indebtedness of the Debtor to Gainer Bank (hereinafter: "Gainer") and guaranteed by the State Student Assistance Commission of Indiana (hereinafter: "Indiana") is dischargeable in Bankruptcy pursuant to 11 U.S.C. § 523(a)(8)(B) based on undue hardship.

Pursuant to the Pretrial Order of February 10, 1987, this adversary was set down for Bench trial on March 16, 1987 at which time the same was submitted and evidence and arguments heard.

Findings of Fact

The Debtor testified that he was 31 years of age, presently married and was living with his wife and three children ages nine, ten and twelve.

The Debtor just purchased a new home about one month prior to the trial and moved out of a trailer which he sold for $ 500.00, the proceeds of which were used to purchase a new washer  [**2]  and dryer. The monthly mobile home payments were approximately $119.00 a month while the monthly payments on the new home are $ 300.00. The Debtor stated his previous budget filed with his Chapter 13 case was erroneous and should have reflected previous monthly expenses for shelter of $ 250.00. The new residence required a $ 2,500.00 down payment which was borrowed by the Debtor from his father-in-law.

The Debtor had worked nine years for Inland Steel and presently employed as a janitor by that company. His highest job classification was as a flue cleaner. He asserted he will never obtain that class again.

The Debtor's earnings were as follows for the following years:

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