QUESTION
Are student fees owed directly to a school forgivable with bankruptcy and why?
Asked on May 19th, 2015 on Bankruptcy - Colorado
More details to this question:
I read the previous advice that a dependent student declaring bankruptcy could probably not receive forgiveness for their student loans. However, what if they have no official student loans, but instead owe $30,000 directly to the university i.e. direct accounts receivable that has been sent to a collection agency. In this case, if the student filed bankruptcy could they be released from the $30,000, obtain access to their transcripts and make a fresh start with their education at a different university?
6 ANSWERS
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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It might work. There is authority for the view that money owed directly to an institution of higher education is not the kind of student loan which may not be discharged. Consult an experienced bankruptcy lawyer. Good luck
Answered on May 20th, 2015 at 5:14 AM
Student loans guaranteed by the Federal Government, or owed to a non-profit school are not typically dischargeable in a bankruptcy (if the school is a for profit school, the debt would be dischargeable). With non-dischargeable student loans, they can be classified as dischargeable if the debtor can prove an undue hardship on him or her, or their dependents. This can be tough to do. You would be well advised to meet with an experienced bankruptcy lawyer face to fact to discuss your options. Good luck!
Answered on May 19th, 2015 at 4:58 PM
Debt Settlement Attorney serving Chicago, IL
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Law Offices of Daniel J. Winter
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Generally, student fees directly owed to the school can be eliminated in bankruptcy. You'll need to bring the documents in to review everything with an experienced attorney.
Answered on May 19th, 2015 at 4:31 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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It may be possible to discharge debts due directly to the school, however I would have to examine the details.
Answered on May 19th, 2015 at 4:19 PM
Deborah F. Bowinski
If it is truly nothing more than an unpaid tuition bill then it can probably be discharged in bankruptcy. However, often students enter into tuition payment plans or other such arrangements with a college or university and if that is the case then it could actually be a loan rather than an outstanding bill. Also, there are some actual student loans that are arranged through and payable to the school and if the debt is one of those (typically Perkins Loans) then it will not be discharged.
Answered on May 19th, 2015 at 3:51 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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You are correct. Student loans are not dischargeable in bankruptcy but tuition owed to an university is dischargeable. Upon filing bankruptcy, the university must give you access to your transcript.
Answered on May 19th, 2015 at 3:51 PM