Bankruptcy School
Bankruptcy School at Amazon
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A breathtakingly mutual scenario is as follows: You not long back attended, and perhaps even graduated from, a college or university that is now keeping your transcript and other such official documents. Unfortunately, however, you have not been capable to fulfill your financial obligation to that institution. And because their records show that you have an great tuition remainder with them, they refuse to release those school records to you. You talk about payment arrangements with them in the hope that they’ll release the transcripts upon the setting up of a payment plan, but are shocked to learn that they still won’t release your records until the payment plan is entirely completed, i.e. no transcript until each penny on your account is salaried up. Take heart – you’re not alone. And what’s more, the law is unquestionably on your side. In fact, this very problem has been litigated, and the results have hinged upon two key subsections of the Bankruptcy Code. First, the “automatic stay” section: 11 USC § 362. Automatic stay (a) Except as provided in subsection (b) of this section, a petition filed under section 301, 302, or 303 of this title, or an application filed underneath section 5(a)(3) of the Securities Investor Protection Act of 1970, operates as a stay, applicable to all entities, of– (1) the commencement or continuation, including the issuance or employment of process, of a judicial, administrative, or other action or proceeding versus the debtor that was or could have been commenced before the commencement of the case beneath this title, or to recover a assert versus the debtor that arose before the commencement of the case beneath this title… Interpreting this section of the bankruptcy code, courts have ruled that the withholding of academic transcripts (or other such official documents) is in principle no dissimilar than an action versus the debtor to recover a debt that arose before the case was filed, and as such is prohibited, so long as the case is pending, by the automatic stay as outlined above. Next, let’s look at what the law holds after the discharge: 11 USC § 524. Effect of discharge (a) A discharge in a case underneath this title– (2) operates as an injunction versus the commencement or continuance of an action, the employment of process, or an act, to collect, recover or offset any such debt as a personal liability of the debtor, whether or not discharge of such debt is waived… Interpreting this section, courts have likewise held that the withholding of school transcripts is in essence the same as an action to gather on a debt that, because it has been decently discharged, is subject to the injunction described in division 524. In sum, filing a bankruptcy petition provides a viable answer to the transcript dilemma; that is, you needn’t fear that by including the tuition debt in your petition, you are preventing yourself from ever being competent to get your transcripts. Nor are you forced to suffer financial hardship in repaying that tuition debt before the school will release the records you need. Quite simply, the law forbids a school’s refusal to release academic records, both for the duration of the bankruptcy and after discharge, when that refusal is because of an antecedent debt. |
