From: Doris Lynch (dlynch@chapman.edu)
Date: Wed Oct 17 2001 - 17:38:29 EDT
Can you please reply to the list. Thank you - Doris Lynch
----- Original Message -----
From: "Judy Ralph" <JRalph@otterbein.edu>
To: <bursar-l@virginia.edu>; <eduaccountants@otterNet.otterbein.edu>
Sent: Wednesday, October 17, 2001 12:44 PM
Subject: Bankruptcy question
> I've never run across this particular scenerio and perhaps some of you
> have, so I'm asking for your collective wisdom and advice. I just
> received a Chapter 7 filing on a currently enrolled student. She is a
> full-time, traditional age student (21 yrs. old), and for the past two
> years, has been considered independent for financial aid purposes. This
> was the result of an appeal to the Special Circumstances Committee,
> which granted her an override to her dependency.
>
> Our students register for the entire academic year in the Spring term of
> the prior year. (We are quarter based.) This student has a small
> balance due for this quarter, less than $400, which is primarily books
> charged to her account. I know that while this Chapter 7 is in
> progress, I cannot bill her or make any attempt to collect this current
> balance due until she receives a discharge. Since tuition debts are
> non-dischargeable, at the discharge, I can start the processes to bill
> and collect this amount now due.
>
> Here's the real issue: since she is enrolled for future terms, can I
> legally bill her for those terms, and if not, can I cancel her future
> registrations? Or would the Bankruptcy Court see that as an effort to
> collect the prior debt? Along the same lines, can I cancel her abilty
> to charge her books to her student account? Realistically, it could
> take 6 months for the discharge to happen and that would mean that she
> could remain here through all of 2001-02 if I cannot cancel her
> registrations.
>
> I thought I'd ask all of you bankruptcy gurus for your opinions before I
> ask a rather expensive attorney specializing in bankruptcy for an
> official opinion.
>
> Thanks in advance,
> Judy Ralph
> Student Accounts Manager
> Otterbein College
>
>
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