Re: bankruptcy laws

Daniel: I'm no attorney, but willing to interpret. Here is a standard bit
and basic philosophy we disclose:

According to 11 United States Code 523(a)(8), "A discharge...does not
discharge an individual debtor from any debt for an educational
benefit...insured or guaranteed by a government unit, or made under any
program funded in whole or in part by a government unit or nonprofit
institution...". Linfield College is a "nonprofit educational institution".

For additional information, may I respectfully refer you to:

1) Omnibus Budget Reconciliation Act of 1990, Public Law 101-508; 2)
Student Loan Default Prevention Initiative Act of 1990, dated November 5,
1990; 3) Crime Control Act of 1990, Public Law 101-647, dated November
28, 1990, 4) 34 CFR Section 674.49, and, 5) Section 220 of the Bankruptcy
Abuse Prevention and Consumer Protection Act of 2004.

These enactment's reflect Congressional intent that borrowers repay their
educational loans at a time of decreasing resources for higher education to
preserve increasingly scarce resources for use by future generations of
students.
_______________

Having said that, now let me try to address some of your issues:

--On Wednesday, November 23, 2005 8:36 AM -0500 "Maguffin, Daniel"
<MAGUFD@rpi.edu> wrote:

> Looking for an interpretation of bankruptcy laws as it pertains to
> student account debt and the release of transcripts/grades/diploma.
AFTER A STUDENT FILES FOR BANKRUPTCY RELIEF BUT BEFORE DISCHARGE OR
DISMISSAL YOU CANNOT REFUSE TO RELEASE A REQUESTED TRANSCRIPT. I'M NOT
SURE IF A DIPLOMA FALLS INTO THE SAME CATEGORY, I HOPE NOT. AFTER THE CASE
HAS BEEN DISCHARGED OR DISMISSED, YOU MAY DENY A REQUESTED TRANSCRIPT IF
THE DEBT IS NOT DISCHARGED IN BANKRUPTCY. OUR PHILOSOPHY IS THAT THE DEBT
IS NOT DISCHARGED.
>
>
>
> What are the implications to an institute if a student includes a Bursar
> debt for tuition and fees in filing Chapter 7 bankruptcy?
>
> My experience and understanding of bankruptcy law is that chapter 7
> bankruptcy and ultimate discharge prevents the school from actively
> pursuing the debt but that it does not however, require the school to
> release records. These records still may only be released upon payment
> of the debt. The debt still remains on file, we simply are not legally
> permitted to pursue collection activities against the student but may in
> fact still deny access to the records.
>
> Is this an accurate interpretation? I THINK NOT! IT HAS BEEN CASE
HISTORY FOR YEARS THAT TO DENY A REQUEST FOR A TRANSCRIPT DURING THE
BANKRUPTCY IS TANTAMOUNT TO REQUESTING PAYMENT WHICH IS ILLEGAL DUE TO THE
BANKRUPTCY STAY. AGAIN, AFTER DISCHARGE OR DISMISSAL AND IF THE DEBT IS
NOT DISCHARGED IN BANKRUPTCY, YOU MAY DENY A TRANSCRIPT REQUEST. Is there
any IRS regulation that
> addresses this? I THINK THE BEST REFERENCE IS 11 United States Code
523(a)(8). Any information would be grateful.
>
> HAPPY THANSKGIVING TO ALL!!!!!
>
> Daniel Maguffin
>
> Bursar
>
> Rensselaer Polytechnic Institute
>
> Troy, NY 12180-3590
>
> 1-518-276-6788
>
> http://finance.rpi.edu
>
>
>

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 Mon Nov 28 08:23:58 2005