RE: Bankruptcy

The way the fees are handled by your school may make the difference. If
you remove the fees and transfer them to an account specifically set up
for the sponsoring agency/employer, then your assessment is correct. At
that point, by removing the fees from the student's account, h/she is no
longer responsible for them. However, if the fees/charges remain on the
account set up for the student, as they do here, then the student
continues to be responsible for the fees, no matter who is billed for
them. It's an important thing to consider and may make all the
difference to the bankruptcy court.

Judy Ralph

-----Original Message-----
From: Ernie Millard [mailto:emillard@tru.ca]
Sent: Tuesday, November 08, 2005 12:39 PM
To: Deb.Brondsema@davenport.edu; sucha@duq.edu; Ralph, Judith;
CLARK_P@sunybroome.edu; bursar-l@Virginia.edu
Cc: Bill.Minor@davenport.edu; Michael.Sleva@davenport.edu
Subject: RE: Bankruptcy

Hi Judy, I am sorry but I do not agree. If I understand the timing of
the events correctly - the student fees were charged to the sponsoring
agency and were formally recognized in the subsequent bankruptcy filing.
 Our past experience has indicated this legally discharges the
obligation and it would be illegal for the school to attempt to pursue
payment of this amount again from anyone else.

I concur with your comment that it remains the student's
responsibility " no matter who pays or doesn't pay. Employers have been
known to go out of business, refuse to pay due to poor grades, the
student may be fired or quit - any number of variables. " However none
of these situations trigger a legal discharge of the obligation like the
bankruptcy filing.

I would be very interested if anyone has had an experience or legal
opinion contrary to our experience. Ernie

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                                                  Ernie Millard
                                             Director of Finance
                                       Thompson Rivers University
                                  Box 3010, Kamloops B.C. V2C 5N3
                Phone: (250) 371-5602, Fax: (250) 371-5601, email:
emillard@tru.ca

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>>> "Ralph, Judith" <JRalph@otterbein.edu> 11/08/05 9:11 am >>>
Ultimately, it's still the student's responsibility to pay, no matter
whom h/she directs the billing to - parent, company, etc. We accept
employer's authorizations to bill, but it's still the student's
account,
no matter who pays or doesn't pay. Employers have been known to go
out
of business, refuse to pay due to poor grades, the student may be
fired
or quit - any number of variables. You're extending credit to the
student, not the employer, in this case, so I would disregard the
bankruptcy and go after the student. You could always have your
attorney file a request with the Bankruptcy Court to determine
dischargeability, but I don't think that's necessary.

Judy Ralph

Student Accts Manager

Otterbein College

Westerville, OH

________________________________

From: bursar-l-bounces@list.mail.Virginia.EDU
[mailto:bursar-l-bounces@list.mail.Virginia.EDU] On Behalf Of Clark,
Patricia
Sent: Tuesday, November 08, 2005 10:04 AM
To: Deb Brondsema; sucha@duq.edu; bursar-l@Virginia.edu
Cc: Bill Minor; Michael Sleva
Subject: RE: Bankruptcy

Great question! I'd be interested in seeing the responses. In the
past, if an employer refused to pay after giving us an authorization
to
bill, we billed the student and held future registrations and
transcripts until the account was paid in full.
..........pat

Patricia J. Clark
Bursar
Student Accounts Office
Broome Community College
PO Box 1017
Binghamton, NY 13901-1017

Phone: (607) 778-5286
Fax: (607) 778-5536

email: clark_p@sunybroome.edu

________________________________

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 12:58:45 2005