From: Bonn, Donna (DBONN@seattleu.edu)
Date: Fri Sep 21 2001 - 12:49:31 EDT
I agree with Pat and follow (at our attorney's advise) the same general
policies.
***********************************************************************
Donna Bonn
Associate Director
Student Financial Services
Seattle University
900 Broadway - USVC 105
Seattle, WA 98122
Phone: (206) 296-5891
FAX: (206) 296-5755
Email: dbonn@seattleu.edu
***********************************************************************
-----Original Message-----
From: Piper, Pat [mailto:ppiper@ufl.edu]
Sent: Friday, September 21, 2001 5:15 AM
To: bursar-l@virginia.edu
Subject: FW: Bankruptcy
> 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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