Is bankruptcy an option if I am being sued by my University? 8 Answers as of March 24, 2011I owe money to a previous University, the account was sent to collection and they are doing what debt collectors do (harass and try to be strong arm). But what worries me about this issue, is that they can possibly sue me for the debt. The original total amount of money due was about $2,700.00, but after certain fees were tacked on it is now $4,000.00, so basically I am asking what is the worst that can happen? and what is likely to happen in this situation? As a side note, I did not borrow any money from the Government or Private lenders, it is just an unpaid tuition (most people I've spoken to before have a hard time differentiating the difference between borrowed money and my actual situation) I hope some one can help!
The Law Office of John T. MacDonald Jr., PLLC | John MacDonald Jr.
It is best to call an attorney and discuss what is best for you. It maybe better to have an attorney negotiate a settlement with the University. If you continue to do nothing the University could go to court an get a judgment and then ask the court to garnish your wages.
Answer Applies to: Michigan
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
If it wasn't a student loan, it would be dischargeable. Send the collection agency a "do not call letter" and they will have to stop calling. If they don't stop calling after you send the letter (certified mail, return receipt) you could sue them.
Answer Applies to: California
Ferguson & Ferguson | Randy W. Ferguson
It would ultimately be decided by the bankruptcy court. It appears it would be like any other debt they could sue over. You could bankrupt the debt, unless there is something that makes it a school loan that is not dischargeable. I have never heard of a school giving a loan or not requiring money before you attend classes.
Answer Applies to: Alabama
Mercado & Hartung, PLLC | Christopher J. Mercado
Unpaid tuition may be treated by the court as either a contractual obligation, or a student loan. If the court finds it to be a contractual obligation then it can be discharged in BK. However, if the court considers it to be a student loan then it will be likely not be dischargeable. The court will consider whether a promissory note exists, and the school's policy on tuition bills.
Answer Applies to: Washington
Burnham & Associates | Stephanie K. Burnham
Bankruptcy may be able to help, student loans are not discharged in Bankruptcy but it sounds like you may have a different situation. You should contact an attorney with the debt information to have them review your individual situation.
Answer Applies to: New Hampshire