CASE NO. 6:05-bk-72044M, AP NO. 6:06-ap-07064.United States Bankruptcy Court, W.D. Arkansas, Hot Springs Division.
December 27, 2006
MEMORANDUM OPINION
JAMES MIXON, Chief Judge
On March 3, 2005, Michael Vance Teel and Terri Leah Teel (“Debtors”) filed for voluntary relief under Chapter 13 of the United States Bankruptcy Code. The Debtors’ Chapter 13 Plan was confirmed on February 8, 2006. The plan proposes to pay $36,450.00 to secured creditors and three cents on the dollar to unsecured creditors for 50 months. The plan does not specifically provide for payments regarding the student loan debt. On March 23, 2006, the Debtors filed a complaint to determine dischargeability of their consolidated student loan debts that have resulted in indebtedness to Direct Loans. The Debtors allege that repaying the debt owed to Direct Loans will cause them an undue hardship. After a hearing on the complaint on October 31, 2006, the Court took the matter under advisement.
The Court has jurisdiction under 28 U.S.C. § 1334 and § 157. This is a core proceeding pursuant to 28 U.S.C. § 157(b)(2)(I). The following shall constitute findings of fact and conclusions of law in accordance with Federal Rules of Bankruptcy Procedure 7052.
Page 2
For the reasons given by the Honorable Morris Sheppard Arnold in In re Bender, 368 F.3d 846 (8th Cir. 2004), this case is not yet ripe for adjudication. This Court makes no findings regarding the merits of the Debtors’ complaint.
By separate judgment, this adversary proceeding will be dismissed without prejudice to the filing at the appropriate time of a complaint to determine dischargeability of the Debtors’ student loan debt.
IT IS SO ORDERED.
Page 1