Menu    7 ABR 44 

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF ALASKA



In re: Case No. F99-00122-DMD )
)
DAVID LEE TOWNSEND, )
)
Debtor.           )
____________________________________________ )
DAVID LEE TOWNSEND,)
)Bancap No. 99-4021
Plaintiff,           v. )
)Adv. No. F99-00122-001-DMD
           v. ) Chapter 7
)
EDUCATIONAL CREDIT MANAGEMENT )
CORP., THE EDUCATIONAL RESOURCES )
INSTITUTE, and THE ALASKA COMMIS-)
SION ON POST-SECONDARY EDUCATION,)
)
Defendants.           )
____________________________________________ )


FINAL JUDGMENT


In accordance with the stipulation submitted by the parties on December 11, 2000, and this court's Order Approving "Stipulated Order Regarding Dischargeability of Debtor's Student Loans," and Amending Case Caption to Conform to Stipulation, dated December 14, 2000,


IT IS ORDERED, ADJUDGED AND DECREED THAT, with respect to the obligations owed by plaintiff David L. Townsend ("Townsend"):


1. EDUCATIONAL CREDIT MANAGEMENT CORPORATION ["ECMC"]. The amount of $93,520 due from Townsend to ECMC is not discharged in Townsend's Chapter 7 bankruptcy proceeding and will accrue interest at the rate of 8.25% per annum from February 11, 1999. Townsend shall make payments to ECMC as follows:
 
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  a. Commencing April 1, 2000, Townsend shall make monthly payments of $732.90 to ECMC for the period April 1, 2000 through August 31, 2000;
 
b. Commencing September 1, 2000 and continuing through March 31, 2001, Townsend shall make monthly payments of $182.00 to ECMC;
 
c. Commencing April 1, 2001 and continuing through June 1, 2001, Townsend shall make monthly payments of $322.00 to ECMC;
 
d. Subject to the provisions of ¶ 5, commencing July 1, 2001 and continuing through March 31, 2015, Townsend shall make monthly payments of $876.40 to ECMC;
 
e. Subject to the provisions of subparagraph 1(g), if not sooner paid, the entire balance due to ECMC, including principal and interest, shall be due on or before March 1, 2015;
 
f. So long as Townsend meets the payment schedule set forth herein, ECMC may take no action to execute on this judgment, however, if any payment is not received by ECMC within twenty (20) days from its due date, ECMC may immediately take all necessary action to enforce the Judgment; and
 
g. Provided Townsend meets the payment schedule set forth herein and makes all payments to ECMC as scheduled in this judgment, or as modified, up or down pursuant to ¶¶ 5 and 8, with the approval of ECMC, any balance remaining due on March 31, 2015 shall be deemed discharged.
 
2. THE EDUCATIONAL RESOURCES INSTITUTE ["TERI"]. The amount of $18,143.44 due from Townsend to TERI is not discharged in Townsend's Chapter 7 bankruptcy proceeding and will accrue interest at the rate of 8.25% per annum from February 11, 1999. Townsend shall make payments to TERI as follows:
 
a. Commencing April 1, 2000, Townsend shall make monthly payments of $146.58 to TERI for the period April 1, 2000 through August 1, 2000;
 
b. Commencing September 1, 2000 and continuing through March 31, 2001, Townsend shall make monthly payments of $36.40 to TERI;
 
c. Commencing April 1, 2001 and continuing through June 30, 2001, Townsend shall make monthly payments of $64.40 to TERI;
 
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d. Subject to the provisions of ¶ 5, commencing July 1, 2001 and continuing through March 1, 2015, Townsend shall make monthly payments of $175.28 to TERI;
 
e. If not sooner paid, the entire balance due to TERI, including principal and interest shall be due on or before March 1, 2015;
 
f. So long as Townsend meets the payment schedule set forth herein, TERI shall take no action to execute on this judgment, however, if any payment is not received by TERI within twenty (20) days from its due date, TERI may immediately take all necessary action to enforce the Judgment; and
 
g. Provided Townsend meets the payment schedule set forth herein and makes all payments to TERI as scheduled in this judgment, or as modified, up or down pursuant to ¶¶ 5 and 8, with the approval of TERI, any balance remaining due on March 31, 2015 shall be deemed discharged.
 
3. ALASKA COMMISSION ON POST SECONDARY EDUCATION ["ACPE"]. The amount of $21,327.60 due from Townsend to ACPE is not discharged in Townsend's Chapter 7 proceeding and will accrue interest at the rate of 8.25% per annum from February 11, 1999. Townsend shall make payments to ACPE as follows:
 
a. Payments totaling $2,010.24 for the period April 1, 2000 through March 1, 2001, and, subject to ¶ 5, payments totaling $2,403.84 for each twelve-month period commencing April 1, 2001 and ending on March 1, 2015;
 
b. Townsend to file for each Alaska Permanent Fund Dividend ("PFD") on or before February 28 of each year, and may not assign or alienate the proceeds of the PFDs for any other purpose or creditor other than ACPE;
 
c. Townsend shall provide ACPE with proof of his filing by February 28 of each year;
 
d. To the extent ACPE receives less than $2,010.24 from Townsend's 2000 PFD, Townsend will pay the difference to ACPE on or before December 1, 2000;
 
e. Subject to the provisions of ¶ 5, to the extent ACPE receives less than $2,403.84 from each of Townsend's PFD's for years 2001 through 2015, Townsend will pay the difference to ACPE on or before December 1, of each such year;
 
f. Should Townsend have his PFD proceeds attached or diverted in some manner or should otherwise the funds become unavailable to ACPE or not paid TOP       7 ABR 47  directly to ACPE from the Permanent Fund Dividend Division, Townsend will pay to ACPE the amount of $2,010.24 by December 1, 2000, and, subject to the provisions of ¶ 5, the amount of $2,403.84 by December 1 of each year between 2001 and 2015;
 
g. Should Townsend become ineligible to receive a PFD, or the dividend program be discontinued during the term of this Judgment, Townsend shall to pay to ACPE the amount of $167.52 per month commencing April 1, 2000 through March 1, 2001, and the amount of $200.32 per month commencing April 1, 2001 through March 1, 2015;
 
h. If not sooner paid, the entire balance due to ACPE, including principal and interest shall be due on or before December 1, 2015;
 
i. So long as Townsend meets the payment schedule set forth herein, ACPE may take no action to execute on this Judgment, however, if any payment is not received by ACPE within twenty (20) days from its due date, ACPE may immediately take all necessary action to enforce the Judgment;
 
j. Provided Townsend meets the payment schedule set forth herein and makes all payments to ACPE as scheduled in this judgment, or as modified, up or down pursuant to ¶¶ 5 and 8, with the approval of ACPE, any balance remaining due on December 31, 2015 shall be deemed discharged; and
 
k. Townsend will be in default to ACPE if he fails to apply for a PFD at a time when he is eligible to receive such a dividend, or at such time as either Townsend is not eligible to receive a PFD or ACPE does not receive his PFD and Townsend has not made the then due equivalent of the payments set forth in subparagraph 3.a.
 
4. USA GROUP. The obligation owed to USA Group, in the approximate amount of $6,757 is not discharged in the Bankruptcy proceedings.
 
5. In the event Townsend extends his existing teaching contract through the school year 2001-2002, on the same salary basis, Townsend shall make:
 
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a. Monthly payments for July, August, and September 2001 of
 
(1) $876.40 to ECMC, and
 
(2) $175.28 to TERI;
 
b. Commencing October 1, 2001 through June, 2002 monthly payments of
 
(1) $322.00 to ECMC, and
 
(2) $64.40 to TERI; and
 
c. Payments totaling $2,010.24 to ACPE for the period commencing April 1, 2001 and ending March 31, 2002, provided that to the extent the PFD for year 2001 is less than $2,010.24, or to the extent ACPE receives less than $2,010.24 from Townsend's 2001 PFD, Townsend will pay the difference to ACPE by December 1, 2001.

The terms of this paragraph shall apply only in the event Townsend supplies a fully executed copy of this 2001 contract to ECMC, TERI and ACPE on or before August 1, 2001 or within ten (10) days of receipt by Townsend, whichever is later.
 
6. To the extent Townsend's annual PFDs exceed the amount due to ACPE in any given year, ACPE shall retain all such sums. In the event the obligation to ACPE is satisfied prior to year 2014, Townsend shall pay all his PFDs to ECMC and TERI on a pro rata basis (83.33% to ECMC, 16.67% to TERI), until the obligations to those creditors which are not discharged as provided herein are satisfied in full, or otherwise discharged pursuant to the terms of this judgment.
 
7. Should Townsend suffer a change in circumstances that would make it impossible for him to make the payments set forth herein, Townsend may apply directly to ACPE, ECMC, TERI or each of their successors for deferment or forbearance.
 
8. Until such time as all sums due pursuant to this judgment are paid in full, Townsend shall provide ACPE, ECMC, and TERI with copies of his employment contracts and tax returns annually. Copies of employment contracts shall be forwarded to each entity within ten days of execution. Tax returns shall be forwarded within ten days of the date the returns are filed with the state of federal government. Should Townsend's financial circumstances improve materially from his circumstances on the date of the trial in this matter, February 11, 1999, ACPE, ECMC, and TERI shall have right to increase the payments due from Townsend, taking into account the pro rata percentages due the other TOP       7 ABR 49  student loan creditors; however, in no event will the total amount paid to each creditor exceed the amount excepted from discharge pursuant to this judgment, including accrued interest.
 
9. Except to the extent otherwise specifically provided in this judgment, the obligations of Townsend to ECMC, TERI and ACPE are hereby discharged as an undue hardship pursuant to 11 U.S.C. § 523(a)(8).
 
10. Any payment coming due under the terms of this judgment prior to its entry will be deemed timely made and credited as of the due date if made within twenty (20) days after entry of this judgment.
 
11. Each party to bear its, his, or her own attorney's fees and costs incurred herein.



      Dated: December 14, 2000


                  BY THE COURT



                  DONALD MacDONALD IV
                  United States Bankruptcy Judge