UNITED STATES BANKRUPTCY COURT

 

SOUTHERN DISTRICT OF NEW YORK 

 

 

In re:      :  Case No. 01-40029

 

:  

 

NATALIE M. WILLIAMS  :  Chapter 13

 

:

 

Debtor.  :   

 

STIPULATED JUDGMENT AND ORDER 

 

IT IS HEREBY STIPULATED by and between Natalie Williams (ÒDebtorÓ), and New York State Higher Education Services Corporation (ÒNYSHESCÓ), that judgment be entered in this matter as follows: 

 

1. Debtor executed educational student loan promissory notes (Òthe NotesÓ) totaling $40,320.00, which were guaranteed by NYSHESC, as follows:

 

A.     Note 1 is a Guaranteed Student Loan (GSL) disbursed on or about September 29,1981, in the principal amount of $1,000.00, with a fixed interest rate of 9.00% per annum.

B.      Note 2 is a Guaranteed Student Loan disbursed on or about July 2, 1982, in the principal amount of $750.00, with a fixed interest rate of 9.00% per annum.

C.     Note 3 is a Guaranteed Student Loan disbursed on or about November 26, 1982, in the principal amount of $2,250.00, with a fixed interest rate of 9.00% per annum.

D.     Note 4 is a Guaranteed Student Loan disbursed on or about November 22, 1983, in the principal amount of $2,500.00, with a fixed interest rate of 9.00% per annum.

E.      Note 5 is a Guaranteed Student Loan disbursed on or about December 12, 1984, in the principal amount of $2,500.00, with a fixed interest rate of 9.00% per annum.

F.      Note 6 is a Guaranteed Student Loan disbursed on or about May 12, 1986, in the principal amount of $2,070.00, with a fixed interest rate of 9.00% per annum.

G.     Note 7 is a (i) Guaranteed Student Loan disbursed in two installments on or about October 18, 1988 and November 30, 1988, in the total principal amount of $7,500.00, with a fixed interest rate of 9.00% per annum; and (ii) a Supplemental Loan for Students (SLS) disbursed in two installments on or about October 18, 1988 and November 30, 1988, in the total principal amount of $2,500.00, with a variable interest rate capped at a maximum of 12.00% per annum.

H.     Note 8 is a Federal Stafford Loan (FSL), formerly known as a GSL, disbursed on or about August 21, 1990, in the principal amount of $4,000.00, with a fixed interest rate of 9.00% per annum.

I.       Note 9 is a (i) Federal Stafford Loan disbursed on or about October 15, 1990, in the principal amount of $3,750.00, with a fixed interest rate of 9.00% per annum; and (ii) a Supplemental Loan for Students (SLS) disbursed on or about October 18, 1990, in the principal amount of $4,000.00, with a variable interest rate capped at a maximum of 12.00% per annum.

J.       Note 10 is a Federal Stafford Loan disbursed in two installments on or about September 18, 1991 and December 5, 1991, in the total principal amount of $7,500.00, with a fixed interest rate of 9.00% per annum.

 

 

2. The Notes evidence student loans made to Debtor under a program funded in whole or in part by a governmental unit within the meaning of 11 U.S.C. ¤ 523(a)(8). The program, referred to as the Federal Family Educational Loan Program (FFELP), formerly known as the Guaranteed Student Loan Program, was established by the Higher Education Act of 1965, as codified at 20 U.S.C. ¤ 1071 et seq.

 

3. NYSHESC is a guaranty agency under the FFELP and a New York State agency with its principal place of business located at 99 Washington Avenue, Albany, New York 12255.

 

4. Pursuant to its statutory guaranty under the FFELP, NYSHESC purchased the DebtorÕs Notes from Chase, successor in interest to Chemical Bank, the holder of the loan at that time, in three installments on December 30, 1995, February 4, 1996, and February 25, 1996 in the total sum of $45,610.38. NYSHESC is the current owner and holder of the Notes.

 

5. Debtor currently resides at { ADDRESS }

 

6. On or about January 24, 2001, NYSHESC filed a claim in DebtorÕs Chapter 13 bankruptcy and on or about October 9, 2001, NYSHESC filed an Amended Proof of Claim. Debtor has contested her liability on the Notes on multiple levels and in various forums, including New York State Supreme Court, United States District Court for the Southern District of New York, and the Second Circuit Court of Appeals. The Courts have determined that the outstanding student loan debt owed to NYSHESC is non-dischargeable in bankruptcy.

 

7. Debtor has paid a total of $11,876.44 resulting in an outstanding balance of $72,396.72 as of May 31, 2005 representing $45,610.38 in principal plus $26,786.34 in interest accrued through May 31, 2005.

 

STIPULATION

 

8. Debtor and NYSHESC agree to a settlement of her liability on the student loan debt owed to NYSHESC on the following terms: 

 

a.      Debtor agrees to make a lump sum payment of $50,000.00 to NYSHESC, which shall be received no later than June 30, 2005.

 

 

 

b.      NYSHESC agrees that this lump sum payment will be in satisfaction of the entire balance stated in paragraph 7, including any collection costs or post-petition interest, provided this Chapter 13 Bankruptcy Case remains open until the settlement funds are fully paid.

 

 

 

c.      Debtor agrees that she will not pursue any further litigation against NYSHESC in connection with the Notes described in paragraph 1.

 

 

 

9. Upon compliance with and completion of the terms of this Stipulation, DebtorÕs liability under the Notes described in paragraph 1 shall be deemed satisfied, and any remaining balance due, including any collection costs or post-petition interest, under the original terms of the Notes will be cancelled. NYSHESC will execute and deliver a full, final and complete release of liability from the sums owed under the Notes described in paragraph 1.

 

10. Debtor shall mail a bank check or certified check in the sum of $50,000.00, payable to NYSHESC, as follows:

 

NYSHESC

 

Office of Counsel 13th Floor

 

99 Washington Avenue

 

Albany, New York 12255

 

Attention: Cheryl B. Fisher 

 

11. If this lump sum payment is not received by June 30, 2005, then this Stipulation shall become null and void; the loans shall revert to the original terms and Debtor will be responsible for all amounts due as described in paragraph 7 plus accruing interest and collection costs.

 

12. NYSHESCÕs failure to provide an invoice or reminder notice does not relieve DebtorÕs obligation and/or agreement to make the lump sum payment as described above.

 

13. If Debtor consolidates the Notes, the amount certified will be the amount due under the original terms of the Note, including any charges or fees allowed by federal regulations and this Stipulation shall become void.

 

14. If any one or more terms or provisions of this Stipulation is/are held to be unenforceable, the remaining terms and provisions shall remain in full force and effect and shall be construed as if the unenforceable provisions had never been contained in this Stipulation.

 

15. Any amendment, modification, or waiver of any term or condition of this Stipulation must be made in writing and signed by all parties hereto. Any attempted oral or implied amendment, modification or waiver shall be null and void.

 

16. Except as provided in this Stipulation, all other terms of the Notes remain in effect and are hereby incorporated by reference. To the extent that the terms of the Note conflicts with the terms of this Stipulation, the terms in this Stipulation control.

 

17. The parties of this Stipulation acknowledge that they have been represented by independent counsel of their own choice or have had independent counsel available to them throughout all of the negotiations that have preceded the execution of this Stipulation.

 

18. This Stipulation constitutes the entire agreement of the parties.

 

19. Each person signing this Stipulation warrants that he/she is fully authorized to sign this Stipulation on his/her behalf and on behalf of his/her respective predecessors, transferors and/or assignors and that the Stipulation is therefore, binding upon and enforceable against the same.

 

20. This Stipulation is binding upon and shall inure to the benefit of the parties hereto, their respective heirs, executors, administrators, predecessors, successors and assigns.

 

21. Each party hereto agrees to bear his/her own costs in connection with this Stipulation.

 

22. All notices pursuant to this Stipulation shall be sent by U.S. Mail, postage paid:

 

If to Plaintiff: 

 

Natalie M. Williams

 

{ ADDRESS }

 

If to Defendant: 

 

NYSHESC

 

Office of Counsel

 

99 Washington Avenue

 

Albany, New York 12255

 

Attention: Cheryl B. Fisher, Esq.

 

23. The parties to this Stipulation certify that they have read and fully understand its terms.

 

SO STIPULATED.

 

/s/ Natalie M. Williams

 

Dated: 5/26/05     ____________________________________

 

Natalie M. Williams     Debtor, Pro Se

 

{ ADDRESS }

 

 

 

 

SUSAN E. BEAUDOIN

 

General Counsel

 

/s/ Cheryl B. Fisher

 

Dated: 5/26/05     By: ____________________________________

 

Cheryl B. Fisher, Esq.

 

Attorney for NYS Higher Education Services Corporation

 

99 Washington Avenue

 

Albany, New York 12255

 

(518) 473-1581 

 

 

 

UNITED STATES BANKRUPTCY COURT

 

SOUTHERN DISTRICT OF NEW YORK 

 

 

In re:      :  Case No. 01-40029

 

:  

 

NATALIE M. WILLIAMS  :  Chapter 13

 

:

 

Debtor.  :   

 

 

ORDER  

 

 

The parties having submitted a Stipulated Judgment; no appearances being necessary and, good cause appearing;

 

IT IS ORDERED that the partiesÕ Stipulation is approved by the Court;

 

IT IS FURTHER ORDERED that Judgment be entered in accordance with the partiesÕ Stipulation;

 

IT IS FURTHER ORDERED that each party bear its own costs.

 

DATED this _____________________day of _______________________, 2005. 

 

____________________________________

 

Honorable Robert D. Drain

 

United States Bankruptcy Judge