Re: Bankruptcy

From: Hunt Compton (hcompto@linfield.edu)
Date: Fri Sep 21 2001 - 08:15:01 EDT


Cathy:

I am neither an attorney nor an expert on Bankruptcy but I comment to you
as follows:

1) It is a violation of the bankruptcy law to deny a transcript after the
case has been filed but before the discharge. After the discharge, you may
deny the transcript in most cases. Generally, educational debt is not
dischargeable UNLESS the student filed for "undue hardship". Absent the
undue hardship and after the discharge, we pursue collection.

2A) My guess is that you could not deny future registration "because of
bankruptcy", but you could deny registration because of "prior bad payment
history with the college". Obligations incurred after the bankruptcy case
is filed are not part of the bankruptcy. One would want to make sure that
literally everything was in place to cover future debt if you did re-abmit.

2B) Your "hold" is superseeded by the bankruptcy court.

Hunt

--On Wednesday, September 19, 2001 5:40 PM -0400 cathy foland
<cfoland@siue.edu> wrote:

>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

Hunt M. Compton Phone 503-434-2455
Staff Accountant Fax 503-434-2630
Linfield College email hcompto@linfield.edu
900 SE Baker WWW: http://www.linfield.edu/accounting/index.html
McMinnville, OR 97128



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