QUESTION

Can a parent file for chapter 7 bankruptcy and include a child's tuition debt owed to a university?

Asked on Jul 05th, 2016 on Bankruptcy - Oregon
More details to this question:
I have no federal loans. Child was over the age of 18 at the time of the tuition being accrued. Is this possible?
Report Abuse

4 ANSWERS

Commercial & Bankruptcy Law Attorney serving Powell, OH at Ronald K. Nims
Update Your Profile
Bankruptcy will discharge any liability that the parent has for tuition debt to the university. The child will continue to be liable on this debt. Bankruptcy only discharges the debts of the bankrupt, cosigners liability is not affected. Note that tuition debt owed to a university is dischargeable but student loans are not dischargeable regardless of what purpose the money was used for.
Answered on Aug 03rd, 2016 at 6:54 PM

Report Abuse
Federally insured student loans or loans with private schools are typically not dischargeable in a BK. There are exceptions. Other then that, it shouldn't be a problem (its impossible to give a yes or no answer without reviewing paperwork).
Answered on Aug 03rd, 2016 at 12:02 PM

Report Abuse
Bankruptcy Attorney serving Las Vegas, NV at A Fresh Start
Update Your Profile
Every debt needs to be INCLUDED in a bankruptcy. If the debt is just for tuition, it can be discharged by chapter 7 bankruptcy. if the debt is a STUDENT LOAN, it will not be discharged without filing suit (called an Adversary Proceeding) and showing proof under what is called the BRUNNER TEST that there are extreme reasons for allowing you to escape from paying this debt.
Answered on Aug 03rd, 2016 at 11:10 AM

Report Abuse
It depends on whether you signed a promissory note or guaranteed it. If not, then it is not your debt. If you did sign a guarantee of some sort, however, it is probably not dischargeable in bankruptcy.
Answered on Aug 03rd, 2016 at 10:42 AM

Report Abuse

Ask a Lawyer

Consumers can use this platform to pose legal questions to real lawyers and receive free insights.

Participating legal professionals get the opportunity to speak directly with people who may need their services, as well as enhance their standing in the Lawyers.com community.

0 out of 150 characters