From: Art Delforge (arthur.e.delforge@uwrf.edu)
Date: Fri Sep 21 2001 - 08:15:46 EDT
Cathy,
Tuition is non-dischargeable under both chapter 7 and chapter 13
bankruptcy. Minnesota judge ruled in the case of St. Thomas. That Section
523(a)(8) of the bankruptcy code, makes non-dischargeable an "education
benefit overpayment or loan made by the governmental unit" The debt was
nondischargeable as either and educational loan or and educational benefit.
A judge in Pennsylvania also ruled tuition is an educational loan or an
educational benefit. Effective October 1, 1998 eliminates the seven-year
repayment provision. You have to stop collection efforts from the time you
receive the first notice until the bankruptcy is closed. Then you may
restart your collection affords.
Arthur E Delforge
Director Accounts Receivable
University of Wisconsin - River Falls
410 S 3rd Street
River Falls WI 54022-5001
Phone 715 425-3145
e-mail: arthur.e.delforge@uwrf.edu
Fax 715 425-3390
>>> "McCue, Cathy" <CMcCue@iona.edu> 09/20/01 02:07PM >>>
Cathy,
In response to both of your questions, the only reason that we place "holds"
on student's transcripts or registrations is if they have a balance owed to
the school. With a bankruptcy, the court has forgiven the debt, so nothing
is owed. I don't believe that we can legally collect the money or still
make the student responsible once this has happened. Therefore, we really
have no reason (or right?) to keep a hold on.
I DO require a copy of the Discharge of Bankruptcy to write-off the account.
Cathy J. McCue
Bursar
Iona College
New Rochelle, NY
-----Original Message-----
From: cathy foland
To: bursar-l@virginia.edu
Sent: 9/19/01 5:40 PM
Subject: Bankruptcy
I am interested in finding out what other schools do with students who
owe past due debt and who declare bankruptcy.
1. Do you release transcripts to students whose accounts are in
bankruptcy? What if a "hold" was already in place to block the release
of a transcript to the student before the notice of bankruptcy was
received?
2. Do you permit students whose accounts are in bankruptcy to register
for classes? What if a "hold" was already in place to block the student
from registering before the notice of bankruptcy was received?
Thanks to all who respond!
--
Cathy Foland
Associate Bursar
Office of the Bursar
Southern Illinois University Edwardsville
Phone: (618) 650-3131
Fax: (618) 650-2971
Email: cfoland@siue.edu
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