From: Patricia Swartz (pats@colonel.csc.wilkes.edu)
Date: Fri Sep 21 2001 - 10:00:04 EDT
Can't we just release a student copy of the transcript? If the student is
looking for an official transcript to go to another school (I would release
one to an employer), and receives the transcript, they will still owe the
money to us after the bankruptcy, but will not have a good reason to pay it
off, since they have the transcript that they wanted...
Patricia Swartz <pats@colonel.csc.wilkes.edu>
Loan Correspondent
Wilkes University
Wilkes Barre, PA 18766
At 08:14 AM 9/21/01 -0400, Piper, Pat wrote:
> > WHOA! Hold the fort! I hope you're not needlessly writing
> > off debts that are not dischargeable in bankruptcy. Just a
> > reminder, all student loans and some "educational benefit"
> > receivables are non-dischargeable in bankruptcy due to
> > Section 523(a)(8) of the Bankruptcy Code, unless the borrower
> > receives a discharge based on "undue hardship". In order to
> > do this, the borrower must initiate an adversary proceeding
> > and obtain a judgment from the court. A copy of the
> > Discharge of Debtor does not discharge these debts and they
> > are not "forgiven" by the court.
> >
> > Regarding Ms. Foland's questions, withholding services during
> > bankruptcy is a complex issue that has been tried with
> > different results in different jurisdictions. Our current
> > policy is to maintain holds on all delinquent accounts, but
> > if a borrower contacts us for transcripts, we will usually
> > release them to avoid violating the automatic stay provided
> > by the bankruptcy. And, transcripts are usually used to
> > obtain employment and in the long run, it is to our benefit
> > for the debtor to get a good job since we will have the right
> > to get paid in full after the discharge. And, of course,
> > after the discharge, holds can continue to be maintained for
> > delinquent accounts and transcripts can be denied without penalty.
> >
> > My recommendation would be to check with your attorney for
> > more specific guidance on how to proceed with pending bankruptcies.
> >
> > Pat Piper
> > Administrative Services Coordinator
> > University of Florida
> > University Financial Services
> > S-113 Criser Hall, PO Box 114050, Gainesville, FL 32611
> > (352) 392-0766 Fax: (352) 392-3448
> > ppiper@ufl.edu <mailto:ppiper@ufl.edu>
> >
> >
> > > -----Original Message-----
> > > From: McCue, Cathy [mailto:CMcCue@iona.edu]
> > > Sent: Thursday, September 20, 2001 3:08 PM
> > > To: bursar-l@virginia.edu
> > > Subject: RE: Bankruptcy
> > >
> > >
> > > 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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