RE: Bankruptcy

Good question!
 
I would think that if the company lists the college as a creditor, you
would have to write off. I don't think you could go back after the
student even if they signed a disclaimer.
 
Now, we have had situations where we billed a company, they never paid
and we went back after the student. In that case the disclaimer does
help. But, we've never had a bankruptcy involving a company (not for
tuition anyway).
 
I'd be interested to hear an expert opinion on this issue.
 
Loretta
 
Loretta Chrzan-Williams
Director, Student Accounts
Monroe Community College
1000 East Henrietta Road
Rochester, New York 14623
585-292-2015
 

________________________________

From: bursar-l-bounces@list.mail.Virginia.EDU
[mailto:bursar-l-bounces@list.mail.Virginia.EDU] On Behalf Of Deb
Brondsema
Sent: Tuesday, November 08, 2005 8:28 AM
To: sucha@duq.edu; bursar-l@Virginia.edu
Cc: Bill Minor; Michael Sleva
Subject: Bankruptcy

Here is a hypothetical question ....

A student registers for classes with an authorization to bill a business
for the cost of the student's tuition & fees. That business then files
bankruptcy and lists the University as a creditor. Is the University
required to write off the students tuition & fees charges?
 
If there is a paragraph on the registration form the student signs that
states "... student is responsible for all costs associated with
semester charges ..." - would we be required to write off the tuition &
fee charges?
 
Please respond to the list. Thanks for your time.
 
Deb Brondsema
General Accounting Manager
Davenport University
 
 
 
 
 
 
Received on Tue Nov 8 11:57:20 2005