Is bankruptcy an option if I am being sued by my University? 8 Answers as of March 24, 2011

I 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!

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Financial Relief Law Center
Financial Relief Law Center | Mark Alonso
Unpaid tuition can be discharged in bankruptcy. Student loans are subject to different rules for discharge in bankruptcy. You should contact an attorney to review your options for bankruptcy.
Answer Applies to: California
Replied: 3/24/2011
The Law Office of John T. MacDonald Jr., PLLC
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
Replied: 3/24/2011
Janet A. Lawson Bankruptcy Attorney
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
Replied: 3/24/2011
Ferguson & Ferguson
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
Replied: 3/24/2011
Gus Johnson Attorney at Law
Gus Johnson Attorney at Law | Gus Johnson
if the debt is not federally insured, it should be dischargeable
Answer Applies to: South Dakota
Replied: 3/24/2011
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    Unpaid tuition is dischargeable in bankruptcy, so you may want to consider that as an option if your ability to negotiate otherwise fails.
    Answer Applies to: California
    Replied: 3/23/2011
    Mercado & Hartung, PLLC
    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
    Replied: 3/23/2011
    Burnham & Associates
    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
    Replied: 3/23/2011
Click to View More Answers: