Re: Bankruptcy

Deb:

1) Please contact your legal counsel for their opinion
2) Please value my non legal opinion for what its worth, $.02.

Part I: No! The business bankruptcy filing requires that you do not make
any demands on the business (stay) until after the bankruptcy is discharged
or dismissed. In the mean time, you may make demands on the student. I
don’t think you have any recourse against the business, but the student may
have some recourse against the business. Pursue collection with the
student. Our position on student bankruptcy is to pursue collection after
discharge or dismissal since we believe the debt is “non dischargable”.

Part II: No! The business bankruptcy has no affect on your relationship
with the student. If the only source of revenue for the student is the
business, the business bankruptcy does not entitle the student to a free
education. The student is still responsible for the tuition and fees
regardless of the status of the business in bankruptcy.

Hunt
Not an expert!

--On Tuesday, November 8, 2005 8:27 AM -0500 Deb Brondsema
<Deb.Brondsema@davenport.edu> wrote:

> 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
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Hunt M. Compton Phone 503-883-2455
Staff Accountant FAX 503-883-2630
Linfield College hcompto@linfield.edu
900 SE Baker Street, A454 Melrose Room 105-B
McMinnville, OR 97128
http://www.linfield.edu/accounting/index.html
Received on Tue Nov 8 12:58:23 2005