Are student fees owed directly to a school forgivable with bankruptcy and why? 8 Answers as of May 20, 2015

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?

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The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
Yes, because it is not a loan but an advance. A loan requires you to get money. You did not get money. So it is dischargeable. During the bankruptcy if the school does not give you your transcript, then it is an automatic stay violation and you would have to instruct your attorney to sue them during the bankruptcy.
Answer Applies to: New York
Replied: 5/20/2015
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
If the loan is not guaranteed, it can be discharged.
Answer Applies to: California
Replied: 5/20/2015
Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
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
Answer Applies to: Wisconsin
Replied: 5/20/2015
GARCIA & GONZALES, P.C.
GARCIA & GONZALES, P.C. | Richard N. Gonzales
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!
Answer Applies to: Colorado
Replied: 5/19/2015
Law Offices of Daniel J Winter
Law Offices of Daniel J Winter | Daniel J Winter
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.
Answer Applies to: Illinois
Replied: 5/19/2015
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    It may be possible to discharge debts due directly to the school, however I would have to examine the details.
    Answer Applies to: Michigan
    Replied: 5/19/2015
    Deborah F Bowinski, Attorney & Counselor at Law | Debby 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.
    Answer Applies to: Colorado
    Replied: 5/19/2015
    Ronald K. Nims LLC | Ronald K. Nims
    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.
    Answer Applies to: Ohio
    Replied: 5/19/2015
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